Agrify Corporation (NASDAQ:AGFY) Increases Principal Sum of Convertible Note in Amendment

Agrify Corporation, a leading provider of precision hardware and software for the indoor agriculture industry, recently announced an amendment to its convertible note. This alteration involved a significant increase in the maximum principal sum of the note.

Back in August 2024, Agrify had issued a junior secured promissory note (referred to as the “Junior Note”) to CP Acquisitions, LLC, a company owned and managed by Agrify’s Chairman and CEO, Raymond N. Chang, along with I-Tseng Jenny Chan, a member of Agrify’s board. This initial issuance was a crucial step in enhancing the company’s financial structure.

The latest development on October 18, 2024, saw Agrify and CP reaching an agreement to amend the Junior Note. The amendment entailed raising the maximum principal sum of the note from $1,500,000 to $3,000,000. Despite the increase in principal sum, the conversion price associated with the Junior Note remains unchanged, set at $0.001 per share, with a conversion price of $3.9495, subject to adjustments as per the terms of the Junior Note.

With an annual interest rate of 10%, the Junior Note is expected to reach full maturity on July 1, 2025. It also offers the provision for early prepayment without any additional fees or penalties. The note, which is secured by Agrify’s assets, ranks junior to the company’s existing secured indebtedness. Furthermore, it provides the option for conversion into Agrify’s common stock or pre-funded warrants, at the discretion of CP.

The amendment to the Junior Note, as detailed in Item 1.01 of the Securities and Exchange Commission (SEC) filing, indicates a pivotal financial move for Agrify Corporation. This strategic adjustment aligns with the company’s growth objectives and financial management strategy.

The SEC filing also includes information under Item 3.02 regarding unregistered sales of securities, with details from Item 1.01 being referenced. Additionally, under Item 9.01, financial statements and relevant exhibits, including the Amendment No. 1 to the Junior Secured Convertible Promissory Note dated October 18, 2024, are highlighted.

Investors and stakeholders are closely monitoring these developments within Agrify Corporation as the company navigates through this financial agreement amendment. The outlined changes in the convertible note signify a calculated step in the company’s financial roadmap moving forward.

The signatory for the Form 8-K filing has been duly authorized by Agrify Corporation following the regulatory requirements, ensuring transparency and compliance with the Securities Exchange Act of 1934.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Agrify’s 8K filing here.

About Agrify

Agrify Corporation offers hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. It offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products.