Ancillary Cannabis Co.'s Stock Surges On News Of Merger With California Provider Of CEA Products And Solution
Ancillary Cannabis Co.'s Stock Surges On News Of Merger With California Provider Of CEA Products And Solution
Nature's Miracle Holding Inc. (NASDAQ:NMHI) has entered into a term sheet to acquire 100% of all the outstanding shares of Agrify Corporation (NASDAQ:AGFY).
What Happened
The California-based agriculture tech company that provides equipment and services to the industry said on Wednesday that it would issue shares of its common stock to acquire Agrify.
Under the agreement, each Agrify shareholder would receive roughly 0.45 of a share of Nature's Miracle common stock for each share of Agrify common stock.
Agrify's equity is valued at $6.35 million or $0.4185 per share. Upon closing the merger, Raymond Chang, Agrify's CEO and board chair agreed to assume the role of president of the Agrify division of Nature's Miracle and will join the board of Nature's Miracle.
Nature's Miracle agreed to purchase roughly $750,000 of horticultural LED lighting goods from Agrify before the closing of the acquisition.
Additionally, the company said it will purchase all of Agrify's outstanding indebtedness from the entities with a combination of cash and Nature's Miracle stock.
Why It Matters
The deal is expected to bring a meaningful revenue stream for Nature's Miracle through Agrify's powerful SaaS and AI technology, which can be applied to the former's vertical farming business, the company said. Agrify also has a significant market share in cannabis extraction as it continues to drive revenue growth.
"We believe that Agrify will not only provide meaningful revenue with their cannabis extraction business, but the combined business will benefit through efficiencies with the consolidation of our advanced lighting technology and their industry-leading Software as a service model and vertical farming unit technology," James Li, CEO of Nature's Miracle, said.
Agrify will benefit from the expertise and strong operators that comprise Nature's Miracle management team, as well as its prominent market position providing advanced horticultural and cultivation lighting technologies for agricultural vertical farming.
"We believe the indoor growing industry is in need of a major consolidation and we are glad to have the opportunity to team up with one of the most impressive and experienced teams in the industry," Chang said.
What's Next
The transaction is expected to close within six months of this announcement, subject to completion of mutual due diligence, shareholder approval and customary closing conditions.
Agrify's shares traded 41.0816% higher at $0.4200 per share at the time of writing on Wednesday morning.
自然奇蹟控股公司(納斯達克股票代碼:NMHI)已簽訂了收購Agrify Corporation(納斯達克股票代碼:AGFY)所有已發行股份的100%的條款表。
發生了什麼
這家總部位於加利福尼亞的爲該行業提供設備和服務的農業科技公司週三表示,它將發行普通股以收購Agrify。
根據該協議,每位Agrify股東每股Agrify普通股將獲得大約0.45股自然奇蹟普通股。
Agrify的股權價值爲635萬美元,合每股0.4185美元。合併完成後,Agrify首席執行官兼董事會主席雷蒙德·張同意擔任自然奇蹟Agrify部門總裁,並將加入自然奇蹟董事會。
Nature's Miracle同意在收購完成前從Agrify購買約75萬美元的園藝LED照明產品。
此外,該公司表示將通過現金和自然奇蹟股票從這些實體購買Agrify的所有未償債務。
爲什麼重要
該公司表示,該交易預計將通過Agrify強大的SaaS和AI技術爲自然奇蹟帶來有意義的收入來源,這些技術可以應用於前者的垂直農業業務。Agrify在大麻提取方面也佔有重要的市場份額,因爲它繼續推動收入增長。
Nature's Miracle首席執行官James Li表示:“我們相信,Agrify不僅將爲其大麻提取業務提供可觀的收入,而且合併後的業務將通過整合我們的先進照明技術及其行業領先的軟件即服務模式和垂直農業單位技術來提高效率,從而受益。”
Agrify將受益於組成Nature's Miracle管理團隊的專業知識和強大的運營商,以及其爲農業垂直農業提供先進的園藝和種植照明技術的突出市場地位。
張說:“我們認爲室內種植行業需要重大整合,我們很高興有機會與業內最令人印象深刻和經驗最豐富的團隊之一合作。”
下一步是什麼
該交易預計將在本公告發布後的六個月內完成,但須完成共同盡職調查、股東批准和慣例成交條件。
在週三上午撰寫本文時,Agrify的股價上漲了41.0816%,至每股0.4200美元。
譯文內容由第三人軟體翻譯。
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