Agrify Corporation (NASDAQ:AGFY) has signed a definitive agreement to provide Boone Labs, a Buchanan, Michigan-based vertically integrated cannabis operator, with a broad range of cultivation and extraction solutions at its new production facility.
Boone Labs will be the first customer to leverage Agrify’s full suite of offerings, across cultivation, extraction, and consumer brands, to create a fully operational cannabis production business.
Deal Details
Under the terms of the agreement, which is valued at $2 million, approximately $1.5 million will go towards Vertical Farming Units and $0.5 million will go towards a full range of extraction systems.
Agrify expects to supply Boone Labs with a comprehensive lineup of the services and equipment necessary to launch a highly successful cannabis production facility.
The deal consists of facility design services, industry-leading cultivation, extraction, distillation, isolation, and lab equipment, proven recipes and operating procedures for growing consistently high-quality flower and creating connoisseur-grade extracts, as well as the most advanced and intuitive automation and production-planning software.
Boone Labs has opted to outfit its 8,500 sq. ft. state-of-the-art facility with some of Agrify’s top solutions including Longs Peak Rosin Presses and Axis Trichome Separators for solventless extraction, the PX1 for hydrocarbon extraction, and 72 VFUs, fully integrated with Agrify Insights software, for cultivation.
Why It Matters?
This approach will enable precise control over operations, while providing the accompanying data to prove active ingredient levels, in order to produce consistent high-quality cannabis with exceptional ROI.
Boone Labs is starting with 72 VFUs to remain compliant with the 3,500 plant limit in its current Michigan license, but has room to add an additional 24 VFUs when given an expanded license.
What’s Next?
“As our business plans grew and the popularity of concentrate products increased, our goal evolved to become the premium source for high-quality and high-consistency cannabis products in Michigan and beyond,” Rick Boone, CEO of Boone Labs, said. “Achieving this goal requires expanding our business operations and becoming vertically integrated to give us full control over quality and consistency from the cultivation side to the wide variety of SKUs we deliver.”
Boone said that he is “confident that the trust we’ve built beginning with PurePressure and Kush Masters will extend across the hydrocarbon, distillation, isolation, and cultivation solutions from Agrify. It’s an amazing experience seeing the steps come to fruition for our buildout projected by the end of the year.”
Photo: Courtesy of CRYSTALWEED cannabis on Unsplash
