Key Takeaways:
- Agrify reported revenue of $1.9 million and gross profit of $0.2 million for Q3 2024.
- Net loss for the quarter was $18.6 million, largely due to a $15 million change in the fair value of warrant liabilities.
- New convertible note financing of up to $20 million was secured with an initial $10 million drawdown.
- Ben Kovler was appointed Chairman and Interim CEO on November 5, 2024.
- Agrify announced its intent to acquire Señorita, a hemp-derived THC (HDT) beverage brand.
Third Quarter 2024 Financial Results
- Revenue: Agrify generated $1.9 million in revenue for the third quarter of 2024.
- Gross Profit: Gross profit was reported at $0.2 million for the quarter.
- Net Loss: A net loss of $18.6 million was recorded, primarily due to a $15 million adjustment related to the fair value of warrant liabilities.
As of November 14, 2024, the company has approximately 1.5 million shares of common stock outstanding and 6.3 million warrants.
Recent Developments
New Financing: On November 5, 2024, Agrify secured a new convertible note financing agreement of up to $20 million from Green Thumb Industries, with an initial $10 million draw. The financing is intended to strengthen the company’s balance sheet and support its growth initiatives.
Leadership Changes: Ben Kovler was appointed as Chairman and Interim CEO on November 5, 2024, bringing his extensive experience in the cannabis and hemp industries to Agrify.
Strategic Acquisition Plan: Agrify announced on November 12, 2024, its intent to acquire Señorita, a brand specializing in hemp-derived THC beverages. This move marks the company’s first strategic decision under the leadership of Ben Kovler and reflects Agrify’s intent to diversify its offerings within the cannabis and hemp industries.
Leadership Commentary
“Today really is Day One at Agrify,” said Ben Kovler, Chairman and Interim CEO. “The hemp and cannabis industries are evolving fast, and Agrify’s fortified balance sheet is ready to move on opportunities. We have a deep understanding of the consumer and plan to leverage that strength today to build Agrify’s value for tomorrow. With that in mind, we made our first strategic decision this week when we signed a non-binding letter of intent to acquire the Señorita brand of HDT beverages. While challenges in the industry remain, we are excited about the innovative aspects of this sector and see lots of opportunity ahead.”
Outlook
Agrify plans to leverage its improved financial position and new leadership to pursue growth opportunities, including the potential acquisition of innovative brands like Señorita. While the industry continues to face challenges, the company’s focus on consumer-driven solutions and innovative offerings positions it for potential market expansion.
Key Figures for Q3 2024:
| Metric | Q3 2024 |
|---|---|
| Revenue | $1.9 million |
| Gross Profit | $0.2 million |
| Net Loss | $18.6 million |
| Convertible Note | Up to $20 million secured |
Read the complete financial results here.
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