Agrify Corporation (NASDAQ:AGFY) stock plummeted 30% on April 19, just days after a regulatory filing revealed that the company’s financial statements “should no longer be relied upon.”
Accountants at Marcum LLP are scrutinizing three different Agrify fiscal periods; those ending on March 31, 2022, June 30, 2022 and Sept. 30, 2022.
Agrify is planning to raise up to $1.84 million from the exercise of 10.65 million common stock warrants, and reduce the exercise price of all the existing warrants from $0.65 per share to $0.1725 per share.
Agrify’s Audit Committee concluded that 301,575 warrants issued in a private placement on Jan. 28, 2022 and 688,111 warrants issued in a private placement on March 23, 2022 should have been classified as a liability measured at fair value, rather than as a component of equity.
The change in fair value of the warrants is a non-cash charge and is expected to be reflected in Agrify’s statement of operations.
Agrify stock opened Friday, April 21 at 20 cents. It was up 2.97% at the time of writing.
Photo by Jeff W on Unsplash
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