Agrify Corporation, a central player in the cannabis industry, has recently announced a 1-for-20 reverse stock split. This decision was approved by the Company’s Board of Directors and is scheduled to take effect at 12:01 a.m. on Wednesday, July 5, 2023. The purpose of the reverse stock split is to increase the per share trading price of Agrify’s common stock to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Under the reverse stock split, every 20 current shares of Agrify’s common stock will be consolidated into one new share of common stock. It is important to note that no fractional shares will be issued during this process. Shareholders who would have otherwise held a fractional share will receive a whole share instead. This action will reduce the number of outstanding common stock shares from approximately 32,458,929 to approximately 1,622,947.
The reverse stock split will also result in proportional adjustments to the exercise prices of Agrify’s outstanding stock options, warrants, and shares held back in connection with acquisitions. Additionally, the number of shares issued and issuable under Agrify’s equity incentive plans will be adjusted accordingly. While the reverse stock split will reduce the number of authorized shares of common stock from 200,000,000 to 10,000,000, it will not affect the par value of Agrify’s common stock.
Broadridge Corporate Issuer Solutions, Inc. has been designated as the exchange agent for the reverse stock split. Shareholders who hold their shares electronically in book-entry form are not required to take any action to receive the post-split shares. On the other hand, stockholders who own shares through a bank, broker, or another nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to the processes of their respective brokers.
Agrify Corporation, listed as AGFY, is a leading provider of innovative cultivation and extraction solutions for the cannabis industry. Their focus is on bringing data, science, and technology to the forefront of the market. Agrify’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce high-quality products with unmatched consistency, yield, and return on investment at scale. They also offer a comprehensive extraction product line, including hydrocarbon, ethanol, solventless, post-processing, and lab equipment, empowering producers to maximize the quantity and quality of extracts needed for premium concentrates.
The reverse stock split approved by Agrify’s Board of Directors aims to increase the per share trading price of the Company’s common stock to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market. This strategic move is part of Agrify’s ongoing efforts to solidify its position in the cannabis industry and provide innovative solutions to cultivators and extract producers.