Cannabis technology company Agrify Inc. has converted approximately $13.8 million in debt into equity to regain compliance with Nasdaq's stock listing rules.
According to the news, CP Acquisitions, a company controlled by AgriFi Chairman and CEO Raymond Chan and director Yi Tseng Jenny Zhang, has acquired 11.5 million yen of the company's senior convertible bonds. The company converted the US dollars into pre-funded warrants that can be exercised into up to approximately 8.6 million shares of common stock. release.
GIC Acquisitions, a company controlled by Mr. Chan, converted $2.29 million in subordinated secured notes into prefunded warrants exercisable for up to approximately 3.2 million shares of common stock.
Subject to stockholder approval, the pre-funded warrants may be subject to adjustment provisions if Agrify provides equity financing for a period of 12 months following conversion.
The conversion means Agrify's stockholders' equity will exceed $2.5 million, allowing the company to regain compliance on the Nasdaq exchange, trading as AGFY.
“The decision to convert a significant portion of our senior debt demonstrates the commitment of management and shareholders to Agrify's future,” Chan said in a statement.
Earlier this week, Agrify called off its planned acquisition of agricultural technology company Nature's Miracle, citing “unfavorable terms.”
