Agrify Corporation has completed the sale of its cultivation business to CP Acquisitions LLC, a company affiliated with Agrify’s former CEO, Raymond Chang.
The deal, finalized on December 31, 2024, marks a strategic pivot for Agrify as it shifts its focus toward the growing market for hemp-derived THC beverages.
The transaction involved the sale of all cultivation-related assets, including Agrify’s Vertical Farming Units (VFUs), total-turnkey solution assets, and Agrify Insights software.
CP also assumed liabilities related to the cultivation business, including the termination of two convertible notes worth approximately $7 million. The move simplifies Agrify’s operations, allowing it to concentrate on high-growth areas such as hemp-derived Delta 9 THC beverages.
“We are pleased to complete the sale of Agrify’s cultivation business and simplify our focus,” said Ben Kovler, Agrify’s Chairman and Interim CEO. “This shift enables us to prioritize attractive growth categories tied to THC demand, like our award-winning Señorita THC beverages.”
This transition aligns with Green Thumb Industries’ (OTC: GTBIF) strategic interest in Agrify’s extraction division.
In November, GTI, which is also run by Kolver, acquired a stake in Agrify through a convertible note deal.
Kovler emphasised the value of Agrify’s extraction capabilities while expressing limited interest in its cultivation business. The sale of cultivation assets to CP reinforces GTI’s focus on high-end extraction products, particularly in the premium concentrate market.
Agrify’s divestiture comes alongside its acquisition of Double or Nothing, the maker of the Señorita brand, as part of an all-stock transaction earlier in 2024.
Raymond Chang, now heading the cultivation business under CP Acquisitions, expressed optimism about the future. “The separation of business segments allows both parties to better concentrate their efforts,” he said.
