TROY,
Michigan, Jan. 31, 2024 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Agrify Corporation (Nasdaq: AGFY), a provider of innovative cultivation and
extraction solutions for the cannabis industry, today announced that the company has received formal notification that the Nasdaq Hearings Panel has granted the company’s request for continued listing on The Nasdaq
Capital Market pursuant to an extension through April 15, 2024, to evidence
compliance with Nasdaq Listing Rule 5550(b)(1), which requires
listed companies to have a stockholders’ equity of at least $2.5 million for
continued listing on The Nasdaq Capital Market.
The company
earlier received notice from the Listing Qualifications Staff of Nasdaq
indicating that the company no longer satisfied the rule and was therefore
subject to delisting. In response, the company timely requested a hearing
before the panel, which request stayed any further action by the staff. The
hearing was held on Jan. 11, 2024.
As previously
reported by the company, CP Acquisitions LLC, an entity
affiliated with and controlled by Raymond Chang, CEO of the company and a member of its Board of Directors, and I-Tseng Jenny
Chan, a member of the board, purchased from an institutional investor the outstanding notes held by such investor, and such debt was
consolidated together with the debt previously held by the new lender into a
convertible note and approximately $3.9 million of the outstanding debt has
been converted into equity at a conversion price per share equal to $1.46, or
212% of the closing price of the company’s common stock at the day of
conversion. Furthermore, as previously announced, on Nov. 30, 2023, the new lender forgave $1,000,000 in debt owed by the company.
As of today’s
date, pursuant to notices of exercise received from the prior lender, the company issued an aggregate of 2,685,629 shares of common stock, an increase of
210,000 shares of common stock from the prior January 25, 2024 announcement by
the company.
Additionally,
the company continues to settle and resolve various prior legal and trade
payables in order to reduce the outstanding liabilities and improve the equity
position of the company.
