Nature’s Miracle Holding Inc. (NASDAQ:NMHI), a vertical farming technology and infrastructure provider, and Agrify Corporation (NASDAQ:AGFY), a leader in cultivation and extraction technologies for the cannabis industry, have mutually agreed to terminate their previously announced merger plan due to unfavorable market conditions. The decision, announced Monday, comes just four days after the merger plan was initially revealed.
Termination Agreements Executed With No Fees
Both companies have executed termination agreements with mutual releases, canceling all prior agreements without any termination or cancellation fees. This also includes the cessation of Nature’s Miracle’s acquisition of Agrify’s outstanding debt.
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James Li, chairman and CEO of Nature’s Miracle, commented, “Based on the current unfavorable market conditions, we’ve determined this is in the best interest of our shareholders and the long-term value of our business. At Nature’s Miracle, we will continue to focus on our core indoor growing products including grow light, dehumidifier and container growing systems where we are seeing strong momentum.”
Terminated Merger Planned To Enhance Revenue Streams
The original merger agreement, announced on May 16, proposed that Agrify shareholders would receive 0.45 shares of Nature’s Miracle common stock for each Agrify share held. Agrify would have become a wholly-owned subsidiary of Nature’s Miracle, with Agrify shareholders anticipated to own approximately 30% of the combined company’s common stock.
The merger was expected to bring significant benefits, including a new revenue stream for Nature’s Miracle through Agrify’s SaaS and AI technology, applicable to vertical farming. The merger was also set to enhance Nature’s Miracle’s market share by combining management teams and leveraging Agrify’s expertise in cannabis extraction.
Despite the termination, both companies expressed mutual respect and appreciation. “We extend our appreciation to the Agrify team for their cooperation,” Li added.
NMHI And AGFY Price Action
NMHI’s shares were trading 22.85% lower at $0.52 per share and AGFY’s shares were trading 9.83% lower at $0.3001 per share by the time of this writing around 3 PM ET Monday.
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