Agrify's Debt-to-Equity Conversion Ensures Nasdaq Compliance

May 24th, 2024 Business & Industry
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Agrify (NASDAQ: AGFY), a cannabis technology company, has successfully converted approximately $13.8 million in debt to equity, enabling it to regain compliance with Nasdaq's stock listing rules.

CP Acquisitions, an entity under the control of Agrify's Chair and CEO Raymond Chang, alongside board member I-Tseng Jenny Chan, converted $11.5 million of its senior convertible notes into a prefunded warrant. This warrant is exercisable for up to roughly 8.6 million shares of Agrify's common stock, according to a recent news release.

Additionally, GIC Acquisitions, another entity controlled by Chang, converted $2.29 million of its junior secured notes into a prefunded warrant. This warrant can be exercised for up to about 3.2 million shares of common stock.

These prefunded warrants include adjustment provisions that may be activated if Agrify engages in equity financing within the 12 months following these conversions, pending shareholder approval.

With these conversions, Agrify's shareholder equity will surpass $2.5 million, allowing the company to regain compliance with Nasdaq listing standards. Agrify trades on Nasdaq under the ticker symbol AGFY.

In a statement, CEO Raymond Chang remarked, "The decision to convert a substantial portion of the senior debt demonstrates the management and shareholders' commitment to the future of Agrify."

Earlier this week, Agrify announced the cancellation of its plan to acquire the ag-tech firm Nature's Miracle (NASDAQ: NMHI), citing "unfavorable conditions."

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