Ancillary cannabis business Agrify Corp. said it acquired two marijuana- and hemp-related equipment and services brands from Sinclair Scientific for at least $50 million.
The acquired brands are:
- Precision Extraction Solutions, described as “the industry leader in cannabis and hemp extraction equipment, technology, lab design and site planning.”
- Cascade Sciences, which produces processing equipment such as vacuum ovens and evaporators.
“These leading brands have collectively worked with over 30 multi-state operators and over a thousand cannabis and hemp customers,” Agrify said in a Monday night news release.
Agrify said it expects the acquired brands to generate roughly $40 million in revenue in 2021.
“As a result of this transaction, Agrify now has a physical presence in seven states with a growing number of clients and business partners distributed throughout the country.”
The $50 million acquisition includes $30 million in cash and $20 million of Agrify stock.
The price might increase to up to $65 million based on Cascade and Precision’s performance for 2021.
Billerica, Massachusetts-based Agrify produces hardware and software for use in cannabis cultivation and other crops.
The company went public in January and raised additional capital through an underwritten public offering in February.
Agrify shares trade as AGFY on the Nasdaq exchange.
