Agrify Stock Soars 50% on $50M Cannabis Brand Acquisition
Company to rebrand as RYTHM, Inc. after acquiring portfolio including Dogwalkers and Beboe from Green Thumb Industries.
Shares of Agrify Corporation (AGFY) surged over 50% after the company announced it will acquire a portfolio of well-known cannabis brands from Green Thumb Industries for $50 million. The deal includes popular names such as RYTHM, Dogwalkers, and Beboe.
In a transformative move, Agrify will rebrand itself as RYTHM, Inc., and its stock will trade under the new ticker symbol "RYM" on the Nasdaq Capital Market, effective September 2, 2025. The acquisition was financed through a convertible note, signaling a major strategic pivot for the company.
This transaction positions the newly formed RYTHM, Inc. to capitalize on the growing consumer trend towards hemp-derived THC products for well-being. As part of the agreement, Agrify will license the acquired brands back to Green Thumb Industries for manufacturing and distribution, creating a new revenue stream from licensing fees.
"RYTHM’s future is bright as we are well positioned to deliver revenue growth both in hemp-derived THC sales and brand licensing," said Ben Kovler, Chairman and Interim Chief Executive Officer. "Demand for THC is rising as consumers seek well-being and alternatives to alcohol. And most importantly, these THC products are no longer just available at the dispensary."
Following the acquisition, the company's capital structure will consist of approximately 2.0 million shares of common stock, with warrants for another 7.6 million shares and convertible notes that could add an additional 6.7 million shares if converted. This strategic shift aims to drive topline growth by expanding sales of its hemp-derived products, including the recently launched RYTHM Beverages, into a broader consumer market.