Agrify sales could potentially reach USD 7.5M in revenue with new Projects in Illinois, Massachusetts, and South Africa.
Agrify Corporation (Nasdaq:AGFY), announced that Prairie State Cannabis LLC in Illinois, LowKey LLC in Massachusetts, and MediFlora Cultivation LTD in South Africa have all elected to operate their respective cultivation businesses using Agrify’s Rapid Deployment Packs, further validating the attractiveness and appeal of this first-of-its-kind offering.
Agrify’s RDP program was established earlier this year to make it easier for a broader range of customers to access Agrify’s award-winning cultivation technology. Featuring Agrify’s flagship Vertical Farming Units in a prepackaged, self-contained, and quick-to-deploy format, the thoughtfully designed and engineered RDPs offer an accelerated path to production, cash flow, and profitability for customers. By removing certain barriers and points of friction with the RDPs, Agrify is able to provide customers who have properly equipped facilities with best-in-class cultivation capabilities in potentially as little as 60-90 days. Once installed, the modular nature of the RDPs allows for seamless expansion opportunities, enabling customers the flexibility to grow and scale.
As per the terms of the RDP agreements with Prairie State Cannabis LLC, LowKey LLC, and MediFlora Cultivation LTD, the combined agreements have an expected base value of over USD 7.5M in cultivation-related hardware sales and additionally include future recurring SaaS and production success fees thus increasing Agrify sales. Agrify will initially be providing each customer with an RDP configuration consisting of 56 VFUs. With this infrastructure, each customer will have the potential to produce an estimated 7.5 pounds of premium quality flowers per VFU, per grow cycle, with approximately 5.2 grow cycles expected to be possible each year.
“At Agrify, we pride ourselves on being able to serve the needs of a wide range of cannabis customers with our cutting-edge solutions and complementary services at any stage of growth, both domestically and internationally,” said Raymond Chang, Chairman and Chief Executive Officer of Agrify. “Through our unwavering commitment to continuous innovation and bringing new technologies to market, the RDP program was launched to increase customer access to our VFUs and Agrify Insights cultivation software, while also providing us with a means to further increase our installed base.”
Mr. Chang continued, “Through these new RDP customer engagements, we are excited to support a traditional outdoor farm in Illinois in its quest to expand its current operations through the introduction of indoor cultivation and extraction solutions, a minority-owned social equity dispensary and cultivation business in our home state of Massachusetts that is attempting to elevate the consumer experience in a historically disadvantaged community, and a South African enterprise aspiring to produce the highest quality pharmaceutical cannabis at a low production cost per gram. While these customers come from different backgrounds, serve different markets, and have different operating objectives, it is especially humbling to know that they are unified by their shared trust and belief in our team and our cultivation and extraction solutions. We greatly appreciate the opportunity, through our innovative solutions, to help our customers get to market quickly, efficiently, and with a strong sense of purpose. We are also excited for the opportunity to bring our RDP program to even more customers throughout the world.”
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