09:12 AM EDT, 05/16/2024 (MT Newswires) -- Nature's Miracle Holding (NMHI) and Agrify ( AGFY ) said Thursday they have signed a definitive merger agreement in which a new unit of Nature's Miracle will merge with and into Agrify ( AGFY ).

Under the agreement, Agrify ( AGFY ) shareholders who don't oppose the merger will receive 0.45 of a share of Nature's Miracle common stock for each Agrify ( AGFY ) common share they hold, according to the companies.

They said that based on their current capitalization, it is expected that Agrify ( AGFY ) shareholders will collectively own roughly 30% of the combined companies' post-merger common stock.

Nature's Miracle also agreed to buy and guarantee certain notes issued by Agrify ( AGFY ) with a combination of cash and Nature's Miracle stock, the companies said.

Agrify ( AGFY ) will become a wholly owned subsidiary of Nature's Miracle and their management teams will unite after the transaction closes, which is expected in the second half, the companies added.

Nature's Miracle shares rose 4.4% and Agrify ( AGFY ) shares climbed 7% in recent premarket activity.

Price: 0.3200, Change: +0.02, Percent Change: +7.02