- Agrify Corp (NASDAQ:AGFY) has signed a definitive agreement for its Agrify Total Turn-Key Solution with Loud Wellness Inc., a New Jersey-based cultivation and manufacturing operator.
- Loud Wellness is one of only eight awardees that received both the Class 1 Cultivator and Class 2 Manufacturer licenses in New Jersey.
- According to MJBizDaily, the nascent New Jersey recreational cannabis market will surpass $2 billion in yearly sales within a few years, rivaling neighboring New York and Massachusetts. Loud Wellness is well-positioned to take market share.
- The terms of the 10-year agreement entered include the installation of 500 VFUs and the use of the fully integrated Agrify Insights software at Loud Wellness' Glassboro, NJ facility.
- Agrify will also provide architectural and engineering services, operations consulting, and brand licensing. The engagement is expected to generate ~$100 million in production success fees, based on a conservative 35 pounds annual dry-flower production per VFU and ~$18 million in SaaS software fees for Agrify.
- Also, Agrify may provide Loud Wellness up to an $18 million construction loan based on its standard TTK terms.
- Price Action: AGFY shares are trading higher by 5.42% at $3.89 on the last check Monday.
