Michigan-based Agrify Corp (NASDAQ: AGFY) has closed the sale of its cultivation assets and aims to give more attention to its THC-infused beverage lineup now that its workload has been lessened.
The marijuana-growing portion of Agrify’s business was bought up by CP Acquisitions, LLC — a firm affiliated with the company’s former CEO, Raymond Chang. The assets were acquired for a US$7-million-dollar sum.
“This move allows us to focus on more attractive growth categories tied to THC demand,” interim chief executive, Ben Kovler, explained in a statement. “This includes hemp-derived THC Delta 9 [HD9] beverages and our amazing drinks like Señorita, the award-winning THC Margarita available in nine states and online direct to consumers.”
Furthermore, Chang added that he was happy to continue the cultivation business built by Agrify (and him in part) through the deal. He served as CEO between mid-2019 and late 2024.
In addition to mocktails and other beverages, Agrify has a substantial amount of extraction knowledge. It supplies high-tech systems to the industry. In early 2024, the company installed its latest and greatest PX-30 hydrocarbon extraction system at a customer’s facility in Michigan.
Michigan’s cannabis industry, Agrify’s primary focus, is one of the most prolific in the United States, second only to California. In Q1 alone the state pulled in US$1.1 billion from marijuana merchandise sales.
Agrify has four subsidiaries dedicated to developing and supplying extraction technology: Cascade Sciences, Lab Society, PurePressure and Precision Extraction.
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THC-infused mocktail market gains popularity
As the negative health consequences and potential dangers of alcohol consumption become more broadly recognized all the time, many people are seeking a healthier alternative than tequila drinks.
This increasing popularity is one of the factors prompting Agrify to focus on the distribution of its Señorita margarita. It acquired this drink from the company Double or Nothing LLC last year. As the libation is hemp-derived, it contains less than 0.3 per cent THC and provides consumers with a mildly psychoactive experience.
“Cannabis-based beverages like Señorita deliver consumers an enjoyable experience without the downsides of alcohol,” Kovler said in a press release on Dec. 16. Therein, it was described as being a “delightful, hangover-free beverage alternative.”
A new flavour of Señorita called “Paloma” will be launched this month. Its flavour will be a grapefruit, pomelo and lime combo.
According to the market analysts Grand View Research and Market.us, the THC and CBD-infused libation industries will expand with compound annual growth rates of 19.2 per cent and 23.5 per cent, respectively, for the rest of the decade.
“The increasing utilization of cannabis in treating health conditions such as cancer, neurological disorders, and chronic pain is expected to increase the acceptance and consumption of cannabis beverages in the approaching years,” Grand View Research says.
rowan@mugglehead.com
