Michigan-based cannabis company Agrify Corporation on Monday announced the sale of its cultivation business to CP Acquisitions, LLC, as Agrify plans to focus on its cannabis beverages business. The deal will see CP Acquisitions – which is led by former Agrify chairman and CEO Raymond Chang – assume the business liabilities of the cultivation business and terminates about $7 million in two convertible notes held by CP.
In a statement, Agrify Chairman and Interim CEO Ben Kovler said the deal helps simplify Agrify’s operations.
“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 beverages and our amazing drinks like Señorita, the award-winning THC Margarita available in 9 states and online direct to consumers. … Selling the cultivation business allows Agrify to focus on the future, which we believe includes Más Señorita.” — Kovler in a press release
Chang said that the separation of the business segments “will allow each party to better concentrate their efforts going forward.”
The deal, which closed December 31, 2024, includes Agrify’s Vertical Farming Units, total-turnkey solution assets and Agrify Insights software solutions. Agrify trades on NASDAQ under the AGFY symbol.
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