April 18, 2024

photo credit: Nature’s Miracle

By Lynda Kiernan-Stone, Global AgInvesting Media

Major vertical farming tech and infrastructure company Nature’s Miracle Holding has agreed to acquire 100 percent of Agrify Corporation, a leading provider of innovative cultivation and cannabis extraction solutions, to create the leader of CEA products and solutions providers. 

Under the terms of the agreement, once the transaction is closed in about six months, Raymond Chang, CEO and chairman of the board for Agrify, will assume the role of president of the Agrify division under Nature’s Miracle, and will join the Nature’s Miracle board. 

Agrify’s innovative cultivation and extraction solutions for the cannabis industry merge data, science, and technology, bring the company to the forefront of the industry, while its proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce high-quality products with unrivaled consistency, yields, and ROI at scale.

In addition, its comprehensive extraction product line, including hydrocarbon, ethanol, solventless extraction, post-processing, and lab equipment, empowers producers to maximize the quantity and quality of extract for premium concentrates. 

On the other side of the equation is Nature’s Miracle. Founded by James Li and led by president Johnathan Zhang, Nature’s Miracle is an integrated agtech company providing equipment and services including horticultural lighting, irrigation systems, power distribution systems, materials, and equipment to indoor, greenhouse, hydroponic and vertical growers. It also is the developer of cost-effective solutions for greenhouse systems, automated vertical farming, and modular container grow systems. 

“We believe the indoor growing industry is in need of a major consolidation and we are glad to have the opportunity to team up with one of the most impressive and experienced teams in the industry,” said Raymond Chang, CEO and chairman, Agrify. 

“As a next step to develop the vertical farming industry, it is a natural fit to join forces with the team at Nature’s Miracle. Nature’s Miracle’s lead lighting product is a premium offering in the vertical farming industry and will serve as a critical component in order to advance our extraction and ancillary integrated businesses.”

Chang continued, “Similarly, we developed our VFU, SaaS and AI technologies to be leveraged across indoor farming of agriculture crops and by integrating with Nature’s Miracle’s expansive collection of offerings, we are optimistic the strength of the combined company’s share of vertical farming will reveal a significant scale opportunity.”

This strategic acquisition is expected to generate a meaningful revenue stream for Nature’s Miracle through Agrify’s powerful SaaS and AI technology that can be applied to Nature’s Miracle’s vertical farming business, while its cannabis extraction business continues to drive revenue growth. 

“Following our recent public company debut, we are thrilled to announce the signing of a term sheet to acquire Agrify,” said James Li, CEO of Nature’s Miracle.

“As we reviewed opportunities to accelerate our business’s growth, it was clear that Agrify represented a business with immediate synergy functions. We believe that Agrify will not only provide meaningful revenue with their cannabis extraction business, but the combined business will benefit through efficiencies with the consolidation of our advanced lighting technology and their industry leading Software as a service (“SaaS”) model and Vertical Farming Unit (“VFU”) technology.”

For Agrify, this deal will gain it the benefits from the distinct expertise and strong operators that make up the Nature’s Miracle management team and its prominent market position it has earned by providing advanced horticultural and cultivation lighting technologies powering the vertical farming space. 

“We are especially intrigued by the AI learning capability of Agrify’s SaaS and VFU system,” said Li. “We would like to thank Raymond and the entire Agrify team for building Agrify’s innovative technology and we look forward to working in unison to continue to grow Nature’s Miracle as an industry leader in the vertical farming agriculture business.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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