Agrify Corporation (AGFY) stock soared 14.78% in the after-hours trading session at the price of $21.20 after it acquired Precision Extraction Solutions and Cascade Sciences. AGFY designs and develops premium farming solutions for indoor gardening marketplaces. It employs science and technology to enable its clients to be more productive, efficient, and sensible about their businesses.
AGFY Acquired Precision Extraction Solutions and Cascade Sciences
On 4th October 2021, AGFY published that it had obtained Precision Extraction Solutions and Cascade Sciences. These are the two biggest brands that deliver materials and solutions to the cannabis and hemp industry for extraction, post-processing, and testing. These brands have mutually worked with over a thousand cannabis and hemp customers and with 30 multi-state operators.
Precision and Cascade anticipate generating revenue of $40 million in 2021 with positive EBITDA. With the help of Precision and Cascade, AGFY has extended its business beyond cultivation by gaining quick access to highly demanded areas of the supply chain. The company now has a physical presence in seven states with a growing number of customers and business partners all over the country.
Management Commentary
CEO of AGFY, Raymond Chang, remarked that they are excited to announce the acquisition of Precision and Cascade. These brands provide leading-edge solutions and exceptional customer service to the cannabis and hemp industry. They have high reputation and management positions in their corresponding spaces.
This acquisition is a perfect addition to accelerate their business growth plans. The accretive and transformative acquisition offers several benefits, including direct access to the thriving global cannabis extract vertical. Additionally, this transaction allows AGFY to engage with more MSOs while driving substantial gains to the lifetime value for their clients. They look forward to realizing their potential while generating significant value for their customers, partners, and stakeholders, Mr. Chang added.
Second Quarter 2021 Financial Results
On 12th August 2021, AGFY published financial results for the second quarter ended 30th June 2021. Revenue increased 203% to $11.8 million for the second quarter of 2021. Total revenue was $3.9 million for the same quarter of 2020 and grew 69% sequentially from $7 million in the first quarter of 2021. For the second quarter ended 30th June 2021, new bookings were $30.7 million, which marked the highest quarterly bookings for the company up to date. Total backlog raised to $101.1 million from $82.2 million at the end of the first quarter of 2021.