Agrify Corporation AGFY, a cannabis and hemp solutions provider, reported its third quarter 2024 financial results Thursday, revealing a $1.9 million revenue, down from $3.1 million a year ago. The company posted a net loss of $18.6 million, largely driven by a $15 million change in the fair value of warrant liabilities.
Q3 2024 Financial Highlights
- Revenue: $1.9 million, compared to $3.1 million in Q3 2023.
- Net Loss: $18.6 million, primarily due to a $15 million change in the fair value of warrant liabilities, compared to a net loss of $2.1 million in Q3 2023.
- Gross Profit: $0.2 million, compared to $1.0 million in Q3 2023.
- Adjusted EBITDA: Not specified in the earnings report.
New Financing Strengthens Agrify’s Balance Sheet
Despite ongoing financial struggles, Agrify secured a $20 million convertible note financing from Green Thumb Industries GTBIF, with an initial draw of $10 million, providing a crucial liquidity boost. This funding aims to strengthen the company’s balance sheet and support future growth opportunities.
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As of November 14, the company has approximately 1.5 million shares of common stock outstanding and 6.3 million warrants.
New CEO’s Commentary
Ben Kovler, recently appointed as chairman and interim CEO emphasized a strategic shift for Agrify. “Today really is Day One at Agrify,” Kovler stated, pointing to the company’s renewed focus on market trends.
“The hemp and cannabis industries are evolving fast and Agrify’s fortified balance sheet is ready to move on opportunities. We have a deep understanding of the consumer and plan to leverage that strength today to build Agrify’s value for tomorrow,” Kovler added.
Read Also: Weedmaps Net Income Surges 312% YOY, Cash Reserves Up 31%
Agrify Expands Into Hemp THC Beverage Market
Agrify also announced a non-binding letter of intent to acquire Señorita, a brand specializing in hemp-derived THC beverages, underscoring the company’s aim to diversify its product portfolio. This acquisition is expected to strengthen Agrify’s position in the cannabis beverage market, a segment gaining momentum across the U.S.
AGFY Price Action
AGFY’s shares traded 30.49% higher at $13.61 per share at the market close Thursday.
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