Nature’s Miracle, Agrify strike $6.35M merger deal

Nature’s Miracle Holding Inc. (NASDAQ: NMHI) announced Wednesday that it has entered into an agreement to acquire Agrify Corporation (NASDAQ: AGFY) in a bid to consolidate the vertical farming sector, especially as Agrify shrinks its business.

Under the terms of the deal, Nature’s Miracle will acquire Agrify by issuing its own common stock to Agrify shareholders. Each Agrify shareholder is expected to receive approximately 0.45 shares of Nature’s Miracle stock for each Agrify share they own. The transaction values Agrify’s equity at around $6.35 million.

The acquisition is expected to provide benefits for both companies. Nature’s Miracle will gain access to Agrify’s SaaS and AI technology, as well as its market share in cannabis extraction. Agrify will benefit from Nature’s Miracle’s expertise in advanced horticultural and cultivation lighting technologies for vertical farming.

“Following our recent public company debut, we are thrilled to announce the signing of a term sheet to acquire Agrify,” said James Li, CEO of Nature’s Miracle, said in a statement.

“We believe that Agrify will not only provide meaningful revenue with their cannabis extraction business, but the combined business will benefit through efficiencies with the consolidation of our advanced lighting technology and their industry-leading Software as a service model and Vertical Farming Unit technology.”

Agrify CEO Raymond Chang will become president of the Agrify division within Nature’s Miracle and join the company’s board upon the closing of the merger.

The transaction, subject to due diligence, shareholder approval, and customary closing conditions, is expected to close within six months. Nature’s Miracle has also committed to purchasing approximately $750,000 of horticultural LED lighting goods from Agrify prior to the closing.