The company says its shareholders’ equity now exceeds the $2.5 million minimum under Nasdaq’s listing code.
Agrify Corp. (Nasdaq: AGFY) announced Wednesday that it converted $13.8 million in debt to equity in and effort to regain compliance with a Nasdaq minimum shareholders’ equity requirement.
The debt conversion comes just days after Agrify and Nature’s Miracle (NASDAQ: NMHI) mutually agreed to terminate their previously announced merger plan that would have given Agrify shareholders ownership of about 30% of the combined company.
Agrify said entities affiliated with CEO Raymond Chang converted $11.5 million of a senior convertible note and $2.29 million of a junior secured note into pre-funded warrants exercisable for millions of Agrify shares.
The conversion involves CP Acquisitions LLC, which is controlled by Chang and board member I-Tseng Jenny Chan, and GIC Acquisitions LLC, and netted pre-funded warrants for up to 8,561,644 shares and 3,225,807 shares, respectively.
In a statement, Chang said the “substantial” debt conversion “shows the management and the shareholders’ commitment to the future of Agrify.” He said it gives the firm “a cleaner and positive balance sheet to fuel our future growth.”
Michigan-based Agrify said it now believes its shareholders’ equity exceeds the $2.5 million minimum under Nasdaq’s Listing
