Agrify Divests Cultivation Business to Focus on THC Beverages

LOS ANGELES- Agrify Corporation, a provider of solutions for the cannabis and hemp industries, has sold its cultivation business to CP Acquisitions, LLC, an entity affiliated with former CEO Raymond Chang. The transaction, completed on December 31, 2024, involved the transfer of assets related to Agrify’s Vertical Farming Units, turnkey solution assets, and Agrify Insights software solutions. CP Acquisitions assumed related liabilities, and two convertible notes held by CP, totaling approximately $7 million, were terminated as part of the deal.

This strategic move allows Agrify to concentrate on the expanding market for hemp-derived THC beverages. The company recently acquired the Señorita brand, known for its THC-infused margaritas, in exchange for 530,000 shares of Agrify common stock. Señorita’s products are available in nine U.S. states and Canada, with plans for further expansion.

Ben Kovler, Agrify’s Chairman and Interim CEO, stated that the divestment enables the company to focus on growth categories tied to THC demand, including hemp-derived THC Delta 9 beverages. Kovler highlighted Señorita as an all-natural, low-calorie alternative to alcoholic beverages.

Raymond Chang expressed satisfaction with the transaction, noting that separating business segments will allow each party to better concentrate their efforts moving forward.

Agrify’s shift in focus comes amid a broader trend in the cannabis industry, with companies exploring alternative product lines to meet evolving consumer preferences. The company’s strategic realignment reflects an emphasis on innovation and market responsiveness within the cannabis sector.