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Agrify Corporation (NASDAQ: AGFY) announced on Monday that CP Acquisition LLC and its existing institutional lender have signed a definitive agreement under which CP Acquisition purchased all of the outstanding convertible and senior secured notes of Agrify held by the existing lender and plans to participate in a future equity raise to inject new capital in the company.
Raymond Chang, the company’s CEO, is one of the principals of CP Acquisition.
The Details
Prior to the note purchase closing, the existing institutional lender converted $3 million in principal amount outstanding under the senior secured note due 2025 issued by Agrify to the existing lender on August 19, 2022, plus $1.1 million accrued interest, to warrants to purchase 2,809,669 shares of Agrify common stock at a conversion rate equal to the minimum price pursuant to Nasdaq listing rules, along with the exchange of the right to receive 375,629 shares held in abeyance under a prior exchange agreement for the same number of warrants. The warrants have an exercise price of $0.001 per share.
CP Acquisition purchased all remaining outstanding convertible notes and senior secured notes held by the existing lender, with an aggregate principal amount of roughly $8.84 million outstanding under the convertible note initially issued to the ...