[PRESS RELEASE] – TROY, Mich., Jan. 6, 2025 – Agrify Corp., a leading provider of branded innovative solutions for the cannabis and hemp industries, announced the Company has signed an agreement for and closed the sale of its cultivation business to CP Acquisitions LLC (CP), an entity affiliated with Raymond Chang, the company’s former chairman and CEO (the “transaction”). The transaction involves the sale of the Agrify cultivation business and assets, the assumption of liabilities related to the cultivation business by CP, and the termination of two convertible notes held by CP totaling approximately $7 million.

On Dec. 31, 2024, Agrify signed an asset purchase agreement for the transaction with CP and simultaneously closed the transaction. Under the asset purchase agreement, CP agreed to acquire all assets related to the cultivation portions of the Agrify business from the company, including but not limited to the company’s vertical farming units (VFUs), the related Agrify total-turnkey (TTK) solution assets and Agrify Insights^TM software solutions (collectively the “cultivation business”).

“We are pleased to complete the sale of Agrify’s cultivation business and to simplify our business,” Agrify Chairman and Interim CEO Ben Kovler said. “We believe focus drives excellence and this move allows us to focus on more attractive growth categories tied to THC demand. This includes hemp-derived THC Delta 9 (HD9) beverages and our amazing drinks like Señorita, the award-winning THC Margarita available in nine states and online direct to consumers.”

Kovler said, Señorita, the country’s leading THC Margarita is an all-natural, low-calorie, great-tasting alcohol alternative that provides an elevated experience. In this Dry January, Señorita feels like an obvious choice for America (www.senoritadrinks.com). Selling the cultivation business allows Agrify to focus on the future, which we believe includes Más Señorita.”

Chang said, “I am pleased to continue the cultivation business, and the separation of business segments will allow each party to better concentrate their efforts going forward.”