Press Release

Burns & Levinson Represents Agrify Corp. in $135 Million Debt Facility

March 17, 2022

Burns & Levinson represented Agrify Corporation (Nasdaq:AGFY), the most innovative provider of premium cultivation and extraction solutions for the cannabis and hemp industry, in an up to $135 million debt financing agreement with an institutional lender in a Senior Secured Note facility that was announced on March 14, 2022. The proceeds will be used for working capital and general corporate purposes. An initial funding of $65 million will be immediately available to the Agrify at an initial closing, with the option for the company to draw down the remaining $70 million available in two subsequent fundings of $35 million each, subject to the satisfaction of certain funding conditions. The Burns & Levinson deal team was led by partner Frank A. Segall, who chairs the firm’s Cannabis Business & Law Advisory Group and Business Law Group, with assistance from partners Robert Petitt and Caitlin Barrett. “It was a privilege to work with Agrify on this pivotal debt facility,” said Segall. “Agrify CEO Raymond Chang and his management team are incredibly talented, and these funds will help them strengthen their balance sheet and continue their accelerated growth trajectory. We are excited for what comes next and look forward to continuing our great work together.” “We continue to see tremendous enthusiasm around the Agrify Total Turn-Key (TTK) Solution program, which is the key driver behind us having over $500 million in carefully vetted sales opportunities in our total qualified pipeline,” said Raymond Chang, Chairman and CEO of Agrify. “This debt facility further validates our TTK program and offers us the immediate balance sheet leverage to fund our continued growth. As we establish additional TTK partnerships, we believe our high-margin recurring production and SaaS revenue streams will provide us with increased financial leverage, allowing us to create more meaningful, long-term value for our shareholders. We are very thankful for the advice by Frank and his entire Burns & Levinson team, and their deep understanding of the cannabis and hemp industries and efforts to close this on a timely basis. Their guidance in establishing this important debt facility has been invaluable.” In October 2021, Burns & Levinson led Agrify’s $50 million acquisition of Precision Extraction Solutions and Cascade Sciences, two of the leading brands that provide equipment and solutions for extraction, post-processing, and testing for the cannabis and hemp industry. Burns & Levinson was the first major Boston corporate law firm to develop a cannabis business practice, and has been advising cannabis businesses, entrepreneurs and investors across the country for nearly a decade. The firm has unrivaled experience in cannabis and hemp/CBD business formation and corporate structuring, private placements, venture capital, M&A, securities, banking issues, fund formation, debt and equity financing, restructuring and receiverships, real estate acquisitions and leasing, intellectual property protection, 280E taxation issues, and cannabis litigation. The firm is well-known for its role in the cannabis banking industry and is among the top law firms in the country handling M&A and high-level corporate and financing deals in the private and public markets in the cannabis market.

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