Benzinga | Aug 11, 2021 09:50AM EDT

Agrify Corporation Teams Up With True House Cannabis To Build-Out New Cultivation Facility

Agrify Corporation (NASDAQ:AGFY) and True House Cannabis LLC are poised to build a 22,000 square foot cultivation facility.

Under the terms of the agreement, Agrify will work with its second Agrify Total Turn-Key Solution customer on the facility's construction, including the installation of 159 of its Vertical Farming Units along with integrated catwalks, integrated grow racks and pest mitigation solutions.

The company, based in Billerica, Massachusetts, will also provide senior financing of up to $7 million to fund the build-out plans. The sum is expected to be repaid within a month following the first commercial production at the facility.

The deal is expected to yield $45.3 million in revenue over the 10-year contract period.

Pursuant to the deal, Agrify will receive fixed SaaS revenue coming from THC's use of the Agrify Insights cultivation software.

Raymond Chang, CEO of Agrify, said he is excited to announce the collaboration with THC.

"The Agrify TTK Solution was developed to enable partners like THC to access the initial capital required to quickly establish modern cultivation facilities and produce high-quality cannabis at scale using Agrify's integrated hardware and software solution," Chang added.

THC, a minority-owned cannabis venture, recently applied to become a fully integrated tier-two licensed cultivator in Haverhill, Massachusetts, which is located roughly 30 minutes outside Boston.

Agrify recently teamed up with Curaleaf Holdings, Inc. (OTCQX:CURLF) to determine the impact of the cultivation environment on the overall health of cannabis plants and harvest yields.

Price Action

Agrify's shares were trading 3.06% higher at $27.60 per share at the time of this writing

Wednesday morning.

Photo: Courtesy of Richard T on Unsplash