Agrify Corp. (Nasdaq: AGFY) announced Monday it has closed its acquisition of hemp-derived THC drink maker Señorita in an all-stock transaction valued at approximately $4.9 million.
The deal involves acquiring certain U.S. and Canadian hemp assets from Double or Nothing LLC, with Agrify issuing 530,000 shares for the transaction, according to a company statement.
“This is great news for Agrify shareholders,” said Ben Kovler, Agrify’s chairman and interim CEO. “We believe Señorita is the best tasting drink in the fastest growing, most exciting beverage category in the country.”
Señorita, created by winemakers Charles Bieler and Joel Gott, offers THC-infused alternatives to classic cocktails. The brand took home top honors at The High Times Cannabis Cup just one year after its launch. Its lineup includes Lime Jalapeño Margarita and Mango Margarita flavors, with plans to launch a Paloma variety in January and Ranch Water in 2025.
The brand’s products are currently sold in nine U.S. states and Canada through major retailers including Total Wine and ABC Fine Wine & Spirits, according to the company.
“When Joel and I created this unique brand, we always anticipated rapid growth, exciting new products and expanded distribution, and now those goals are coming to fruition even faster than we imagined,” Bieler noted in the statement.
The acquisition comes as Agrify, traditionally focused on vertical farming units and extraction equipment for cannabis producers, reported just $263,000 in cash at the end of September and posted an $18.7 million third-quarter loss. The company has accumulated $265 million in losses through December 2023.
Chicago-based Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), one of the largest U.S. cannabis operators, took control of Agrify last month through a $20 million convertible note deal that installed Kovler as interim CEO. Kovler recently purchased 10,000 shares at $38.76 to meet Nasdaq listing requirements.
The company’s board “continues to explore a variety of alternatives for the extraction and cultivation businesses while focusing on optimizing shareholder value creation,” Kovler said. Following Monday’s transaction, Agrify has approximately 2 million common shares outstanding and 7.6 million warrants.
[[{“value”:”New leadership under GTI CEO Ben Kovler is looking at beverage market expansion across the country.
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