Shares of Agrify Corporation ( AGFY ) are soaring after the news of its proposed acquisition.

Vertical farming technology and infrastructure provider Nature’s Miracle Holding Inc. entered into a term sheet to acquire 100% of all the outstanding shares of Agrify ( AGFY ).

Each shareholder of Agrify ( AGFY ) would be expected to receive approximately 0.45 of a share of Nature’s Miracle for each share of Agrify ( AGFY ) common stock.

Based on the fully diluted shares outstanding of 15.17 million and NMHI closing price of $0.93 as of April 16, 2024, AGFY equity is valued at $6.35 million or $0.4185 per share.

The acquisition is expected to act as a revenue stream for Nature’s Miracle through Agrify’s SaaS and AI technology.

In return, Agrify ( AGFY ) will make use of Nature’s market position providing advanced horticultural and cultivation lighting technologies powering agriculture vertical farming.

After the merger, Raymond Chang, CEO and Chairman of Agrify ( AGFY ) will become President of the Agrify ( AGFY ) division of Nature’s Miracle and will join the board of Nature’s Miracle.

Nature’s Miracle agreed to purchase about $750,000 of horticultural LED lighting goods from Agrify ( AGFY ) prior to the closing of the acquisition.

“We believe the indoor growing industry is in need of a major consolidation and we are glad to have the opportunity to team up with one of the most impressive and experienced teams in the industry,” said Agrify ( AGFY ) CEO and Chairman Raymond Chang.

The transaction is expected to be completed within six months. NMHI held $221,760 in cash and equivalents as of December 31, 2023.

Price Action: AGFY shares are trading higher by 27.6% at $0.38 on the last check Wednesday.

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