Marijuana tech company Agrify prices public offering to raise $2.6 million

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Marijuana technology company Agrify Corp. has priced a public offering to raise gross proceeds of $2.6 million.

The net proceeds will be used “for working capital and general corporate purposes, which may include capital expenditures and repayment of debt,” Troy, Michigan-based Agrify said in a Wednesday news release.

The offering includes roughly 6.7 million shares, or prefunded warrants, at 38 cents per share.

Agrify’s Nasdaq-traded shares (AGFY) opened at slightly less than 52 cents on Wednesday.

Earlier this year, Agrify announced steps to reduce its liabilities, including increasing the maximum number of authorized shares.

The company is working to regain compliance with a Nasdaq rule requiring listed companies to have at least $2.5 million of stockholder equity.

In unaudited preliminary financial results released last week, Agrify said it expects its fourth-quarter net loss “to be at a historical low” of $750,000 and anticipates achieving “cashflow break-even in the second half of 2024.”

Agrify said it plans to report its final fourth-quarter results before the end of March.