Benzinga | Apr 5, 2021 07:09AM EDT

Agrify Announces Receipt of $3.5M Purchase Contract, Expanding Customer Relationship with WhiteCloud Botanicals

Agrify Corporation (NasdaqCM:AGFY) ("Agrify" or the "Company"), a developer of highly advanced and proprietary precision hardware and software cultivation solutions for the indoor agriculture marketplace, today announced it has received a $3.5 million purchase order from LNP, LLC, an existing customer doing business as WhiteCloud Botanicals, to include new phases of facility design and build-out as well as 132 more of Agrify's Vertical Farming Units ("VFUs"). Additionally, the agreement will include three years of recurring SaaS revenue for use of the Agrify Insights(tm) software platform. The initial build-out process is expected to commence in April 2021, with a target for completion in Q4 2021.

WhiteCloud Botanicals, which is located in Nevada, currently utilizes 64 VFUs enabling 4,096 square feet of flower production canopy, as well as 500 square feet of clone capacity. The additional 132 VFUs will increase their total VFU footprint to 196 and triple their current flower production canopy to 12,544 square feet. WhiteCloud products will be sold under their own proprietary brand, WhiteCloud Botanicals, and Western Cultured, a respected brand known for delivering the finest consciously-crafted cannabis products. Their products are available at select dispensaries including M Jardin and soon, Planet 13.

"We are very happy to extend our relationship with WhiteCloud and to be a part of building out their cutting-edge cultivation center," said Raymond Chang, Chief Executive Officer of Agrify. "Since the initial installation of our software and hardware solution, they have been able to produce some of the highest quality and most consistent flower in Nevada. With the addition of 132 of our upgraded VFUs, we believe they will continue to excel and elevate the quality of their flower, providing their customers with superior products."

"Agrify's expertise is not only in providing the conditions to cultivate superior flower through their closely controlled VFUs and Agrify Insights(tm) software platform, but also the unparalleled ability to maximize canopy space for indoor grows," said Nick Lynch, Owner and Founding Partner of WhiteCloud. "Since implementing the Agrify indoor grow solution, our products have been in high demand, and their double-stacked VFUs enable us to significantly increase cultivation capacity compared to traditional single-tier grow rooms. Accordingly, we have been able to increase our flower production output without expanding our overall facility footprint. Agrify is a partner that we have had the good fortune of working hand-in-hand with to improve cultivation. They have also served as a valuable sounding board for us on our branding, marketing, and distribution strategies, and we look forward to continuing our successful relationship."