Benzinga | Oct 28, 2021 07:45AM EDT

Agrify Reports Deal With Its First Arizona-Based Customer, Olive El Mirage Partners To Build Out 30K Square Foot Facility In $23.8M Deal

Agrify Corporation (NASDAQ:AGFY) ("Agrify" or the "Company"), a vertically integrated provider of premium cultivation and extraction solutions for the cannabis and hemp industry, today announced it has signed a definitive agreement (the "Agreement") with its first Arizona-based customer, Olive El Mirage Partners LLC ("Olive El Mirage"). Olive El Mirage is a contract cultivation operation working with the top consumer brands in the fast-growing Arizona market.

Under the terms of the Agreement, Agrify will work with Olive El Mirage on the build-out of its 30,000-square-foot facility (the "Facility"), including the installation of 400 of Agrify's Vertical Farming Units ("VFUs") along with integrated catwalks, integrated grow racks, and pest mitigation solutions. The deal value is expected to be approximately $23.8 million, which includes $9.4 million for the purchase of 400 VFUs and recurring SaaS revenue at a value of $14.4 million derived from Olive El Mirage's use of the Agrify Insights cultivation software over 10 years. Both parties also agree that Olive El Mirage will have up to 90 days to determine whether to proceed with a cash purchase of the VFUs or finance this transaction. Olive El Mirage will cover the cost of the construction and facility build-out with its own internal capital.

"I am delighted to announce that we have entered into the Arizona cannabis market, through our new partnership with Olive El Mirage" said Raymond Chang, CEO of Agrify. "We look forward to bringing our unparalleled end-to-end solution to Arizona, which we expect will allow Olive El Mirage to get to market faster through the production of consistent high-quality products for discerning Arizona consumers, driven by industry-leading technology."

"We believe our partnership with Agrify will give us the potential to develop deeper long-term customer relationships earlier in our lifecycle, by delivering high-quality products at an optimized yield with unparalleled consistency at a significantly lower cost," said Alexander Catucci, CEO of Olive El Mirage. "We look forward to beginning our partnership with Agrify, and to establishing ourselves as the market leader of premium cannabis products in Arizona."