ONTARIO, Calif. – Nature’s Miracle Holding Inc. (NASDAQ: NMHI), a company specializing in vertical farming technology, has agreed to merge with Agrify Corporation (NASDAQ: AGFY), a provider of cultivation and extraction solutions for the cannabis industry. Upon completion, Agrify will become a wholly-owned subsidiary of Nature’s Miracle.
The definitive agreement, announced today, follows a previously disclosed term sheet. Agrify shareholders will receive 0.45 shares of Nature’s Miracle common stock for each Agrify share held, resulting in approximately 30% ownership of the post-merger company by Agrify shareholders. Nature’s Miracle has also committed to purchasing and guaranteeing certain Agrify notes with a mix of cash and stock.
The merger aims to combine the management expertise of both companies to capitalize on the growing vertical farming and cannabis extraction sectors. The combined entity plans to leverage core business segments, such as LED lighting, grow feed, and indoor farming control systems, to enhance market share and operational efficiency.
James Li, CEO of Nature’s Miracle, expressed confidence in the merger’s potential to drive market growth and create value for stakeholders. Raymond Chang, CEO and Chairman of Agrify, emphasized the need for consolidation in the cannabis industry and the opportunity for growth through the combined company’s technology and services.
The transaction is anticipated to close in the second half of 2024, subject to shareholder approval and customary closing conditions. The merged company intends to focus on expanding its manufacturing presence in the U.S. and sourcing products from Asia.
Nature’s Miracle, led by James Li and President Jonathan Zhang, offers a range of products for controlled environment agriculture, including horticultural lighting and irrigation systems. Agrify’s Vertical Farming Units and extraction technologies are designed to enhance product consistency and return on investment for cultivators.
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The information in this article is based on a press release.
InvestingPro Insights
Nature’s Miracle Holding Inc. (NASDAQ: NMHI), in its recent merger agreement with Agrify Corporation, is navigating through challenging financial waters. As per the latest real-time data from InvestingPro, Nature’s Miracle is grappling with significant revenue decline, with a stark -52.03% revenue drop in the last twelve…
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