Agrify Corporation (NASDAQ:AGFY) rose sharply Tuesday. Agrify announced Monday it has acquired Precision Extraction Solutions and Cascade Sciences, two of the leading companies in the extraction, post-processing and testing equipment and solutions space, from Sinclair Scientific.
Agrify, out of Billerica, Mass., is a developer of highly advanced and proprietary precision hardware and software cultivation solutions for the indoor agriculture marketplace.
With the addition of Precision and Cascade, Agrify has expanded its core business beyond cultivation by gaining instant access to complementary and highly attractive areas of the supply chain. Precision and Cascade offer cutting-edge technologies and end-to-end service solutions for cannabis and hemp extraction and post-processing.
These leading brands have collectively worked with over 30 multi-state operators and over a thousand cannabis and hemp customers. Precision and Cascade expect to generate approximately $40 million in revenue in 2021 with positive EBITDA. With this transaction, Agrify now has a physical presence in seven states with a growing number of clients and business partners distributed throughout the country.
"We are thrilled to announce the acquisition of Precision and Cascade, two companies that share our strong commitment and passion for delivering leading-edge solutions and exceptional customer service to the cannabis and hemp industry," said CEO Raymond Chang.
"Precision and Cascade have stellar reputations and powerful leadership positions in their respective spaces, which is a perfect complement to our existing business and should allow us to leverage new competitive advantages and synergies in order to accelerate our growth plans."
AGFY shares gained $2.18, or 11.8%, to $20.65.
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