By Sam Boughedda
Investing.com — Agrify Corp (NASDAQ:AGFY), a provider of premium cultivation and extraction solutions for the cannabis and hemp industry, saw its shares surge nearly 15%, to $11.08 a share Tuesday.
The rise was on the back of news the company has signed an agreement for its most significant Agrify Total Turn-Key Solution partnership to date with Gold Leaf Florida, a licensed medical marijuana treatment center.
The agreement — the first for Agrify in the Florida cannabis market— could generate up to $400 million in revenue for the company over the 10-year term, with more than $140 million in revenue expected over the first three years of cultivation.
The deal will see Agrify install 1,510 of its Vertical Farming Units at Gold Leaf's 200,000-square-foot facility, with 100,000 square feet dedicated to VFU cultivation. Gold Leaf also plans to build four additional 200,000-square-foot facilities in Florida, with Agrify hoping to support Gold Leaf through its expected future growth with further unit installations.
"Our partnership with Gold Leaf is a milestone achievement that represents even further validation of our novel TTK program given the scale and economic value of this customer engagement," said Raymond Chang, Chairman and CEO of Agrify.
Adding: "We are also excited about entering the robust Florida medical cannabis market, the nation's largest, with a premier partner like Gold Leaf, and we look forward to leveraging our position for additional growth opportunities in this highly attractive market."
Despite today's increase, Agrify's stock price is still down significantly from its August intraday high of $35.94 per share.