John SchroyerMichigan-based Agrify Corp. (Nasdaq: AGFY) inked an acquisition deal for hemp-based THC beverage maker Double or Nothing, which sells the Señorita brand of hemp drinks, in an all-stock transaction.
In exchange, Double or Nothing will receive 530,000 shares of Agrify, which on Wednesday afternoon was trading at about $9.31 per share with 1.4 million common shares outstanding.
The news comes just a week after Chicago-based Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) took control of Agrify via one of its subsidiaries, with Green Thumb CEO Ben Kovler snagging the top executive role on an interim basis.
“This is an exciting time for Agrify and our shareholders as our business has fresh energy, a strong balance sheet and new perspective on finding solutions in the cannabis industry,” Kovler said. “Americans are demanding alternatives to alcohol, and we believe that (hemp-derived legal THC) drinks will be a big part of the solution… The brand needs capital and energy to handle the tidal wave of demand, and Agrify’s balance sheet and team are ready.”
The Señorita product line debuted in 2023 and is currently sold in Canada and nine U.S. states, with more expansion in the works.
Co-founder Charles Bieler said in the release that since the launch of Señorita drinks, “we can’t keep up with demand.”
Kovler added that cannabis market data “indicates a massive opportunity in the (hemp-derived legal THC) drink market, making this an attractive area to allocate capital. The good news is that Agrify’s balance sheet is well positioned to support the growth that Señorita and this beverage sector are experiencing.”
A new hemp revenue stream could prove a boon to both Agrify – which has yet to release its third quarter financial results, but as of June 30 had just $53,000 in cash and an accumulated deficit of $265 million. The popular hemp drink line could also be a major financial backstop for Agrify’s new financial backers, Green Thumb Industries and Kovler, which have put down a $20 million bet on the company with a new loan earlier this month.
