RTTNews | Oct 5, 2021 10:11AM EDT

10:11 Tuesday, October 5, 2021 (RTTNews.com) - Shares of indoor grow solutions provider for the cannabis and hemp marketplace Agrify Corporation (AGFY) are up more than 16% in the morning trade on Tuesday following acquisition of Precision Extraction Solutions and Cascade Sciences from Sinclair Scientific.

The deal, which includes $30 million in cash and $20 million Agrify common stock, is expected to bring in nearly $40 million additional revenue to the company in 2021.

The purchase price may be adjusted to up to $65 million based on the performance of the Cascade and Precision businesses for the fiscal year ending December 31, 2021, Agrify said.

"This accretive and transformative acquisition offers us a number of critical benefits including giving us direct access to the thriving global cannabis extract vertical, which is expected to grow to $24 billion by 2028, increasing our potential customer base by approximately 50%, and nearly doubling our annual revenue in 2021," said Raymond Chang, CEO of Agrify.

Agrify said that the acquisition expands its core business beyond cultivation by gaining access to complementary post-harvest segment of the supply chain.

Precision Extraction and Cascade provide equipment and solutions for extraction, post-processing, and testing for the cannabis and hemp industry.

AGFY, currently at $21.50, has traded in the range of $6.81- $35.94 in the last 52 weeks.

Read the original article on RTTNews ( https://www.rttnews.com/3230595/agrify-up-16-on-acquisition-of-precision-extraction-and-cascade-sciences.aspx)

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