Agrify Corp. (Nasdaq:  AGFY) announced that it signed an agreement for and closed the sale of its cultivation business to CP Acquisitions LLC, which is affiliated with the company’s former CEO Raymond Chang.

The deal was completed on Dec. 31, 2024.

The deal involves the sale of the Agrify cultivation business and assets, the assumption of liabilities related to the cultivation business by CP, and the termination of two convertible notes held by CP totaling approximately $7 million. Under the agreement, CP agreed to acquire all assets related to the cultivation portions of the Agrify business from the company, including but not limited to, the company’s vertical farming units, the related Agrify total-turnkey solution assets and Agrify Insights software solutions.

Green Thumb Industries (OTC: GTBIF) took a significant stake in the cash-strapped company in November through a convertible note deal. Green Market Report wrote at the time that on GTI’s November earnings call, CEO Ben Kovler cited the company’s interest in Agrify’s extraction division.

“We like the extraction business with Precision. It’s done a great job,” he told analysts, noting that “the high-end dab game is a real segment in this market that has pricing power among a very, very loyal consumer base.” Kovler seemed uninterested in the cultivation side of the business and the sale of these assets seems to support that.

At roughly the same time, Agrify inked an acquisition deal for hemp-based THC beverage maker Double or Nothing, which sells the Señorita brand of hemp drinks, in an all-stock transaction. The Señorita product line debuted in 2023 and is currently sold in Canada and nine U.S. states, with more expansion in the works.

“We are pleased to complete the sale of Agrify’s cultivation business and to simplify our business,” Kovler, who also serves as Agrify’s chairman and interim CEO, said. He went on to say that selling the cultivation business would allow Agrify to focus on hemp-derived THC Delta 9 (HD9) beverages like Más Señorita.”

Agrify Corp. (Nasdaq: AGFY) announced Monday it has closed its acquisition of hemp-derived THC drink maker Señorita in an all-stock transaction valued at approximately $4.9 million.

The deal involves acquiring certain U.S. and Canadian hemp assets from Double or Nothing LLC, with Agrify issuing 530,000 shares for the transaction, according to a company statement.

“This is great news for Agrify shareholders,” said Ben Kovler, Agrify’s chairman and interim CEO. “We believe Señorita is the best tasting drink in the fastest growing, most exciting beverage category in the country.”

Señorita, created by winemakers Charles Bieler and Joel Gott, offers THC-infused alternatives to classic cocktails. The brand took home top honors at The High Times Cannabis Cup just one year after its launch. Its lineup includes Lime Jalapeño Margarita and Mango Margarita flavors, with plans to launch a Paloma variety in January and Ranch Water in 2025.

The brand’s products are currently sold in nine U.S. states and Canada through major retailers including Total Wine and ABC Fine Wine & Spirits, according to the company.

“When Joel and I created this unique brand, we always anticipated rapid growth, exciting new products and expanded distribution, and now those goals are coming to fruition even faster than we imagined,” Bieler noted in the statement.

The acquisition comes as Agrify, traditionally focused on vertical farming units and extraction equipment for cannabis producers, reported just $263,000 in cash at the end of September and posted an $18.7 million third-quarter loss. The company has accumulated $265 million in losses through December 2023.

Chicago-based Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), one of the largest U.S. cannabis operators, took control of Agrify last month through a $20 million convertible note deal that installed Kovler as interim CEO. Kovler recently purchased 10,000 shares at $38.76 to meet Nasdaq listing requirements.

The company’s board “continues to explore a variety of alternatives for the extraction and cultivation businesses while focusing on optimizing shareholder value creation,” Kovler said. Following Monday’s transaction, Agrify has approximately 2 million common shares outstanding and 7.6 million warrants.