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California-based agritech firm Nature’s Miracle Holding (NMHI) entered into a merger agreement with cannabis technology provider Agrify Corporation (AGFY) to acquire it in an all-stock deal valued at $6.35 million.
Under the terms of the agreement, Agrify shareholders will receive 0.45 shares of Nature’s Miracle common stock in exchange for each Agrify share, the companies said in a statement on April 17.
The deal values the cannabis technology provider’s equity at about $0.4185 per share, which represents a premium of 40.48% from the stock’s last close.
After the deal closure, Agrify’s Chief Executive Officer (CEO) Raymond Chang will assume the role of the President of the Agrify division of Nature’s Miracle and will join the board of the agritech firm.
The deal, which is expected to close within the next six months, also includes Nature’s Miracle purchasing all of the outstanding indebtedness from two Agrify CEO-controlled entities, with a combination of cash and Nature’s Miracle stock.
“The combined business will benefit through the consolidation of Nature’s Miracle’s advanced lighting technology and Agrify’s Software as a service (“SaaS”) model and Vertical Farming Unit (“VFU”) technology,” James Li, Chief Executive Officer of Nature’s Miracle said.
Last month, the California-based firm went public on NASDAQ via a business combination with Lakeshore Acquisition II Corp (LBBB). Through its two wholly-owned subsidiaries Visiontech Group, Inc. and Hydroman, Inc., the company offers products including horticultural lighting, irrigation systems, power distribution systems, materials, and equipment to indoor, greenhouse, hydroponic, and vertical growers.
More details about the deal metrics can be found here: Deal Metrics for the acquisition of Agrify Corporation (AGFY) by Nature’s Miracle Holding Inc (NMHI)
Editor’s Note: Baranjot Kaur contributed to this article.
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