Item 3.02. Unregistered Sales of Equity Securities
On February 17, 2021, Agrify Corporation (the "Company") granted ten-year
options to purchase an aggregate of 1,050,000 shares of the Company's common
stock pursuant to the Agrify Corporation 2020 Omnibus Equity Incentive Plan (the
"Plan") to its executive officers and directors. The stock options provide for
an exercise price per share of $13.84, the closing price of the Company's common
stock on The Nasdaq Capital Market on the date of grant, such exercise price
being the fair market value on such date. The stock options will vest in equal
monthly installments over 36 months beginning on the one month anniversary of
the grant date.
The issuances of the securities referred to above were deemed to be exempt from
registration under the Securities Act of 1933, as amended, in reliance on Rule
701 in that the transactions were under compensatory benefit plans and contracts
relating to compensation as provided under Rule 701. The recipients of such
securities were the Company's employees and directors and received the
securities under the Plan. Appropriate legends were affixed to the securities
issued in these transactions. Each of the recipients of securities in these
transactions had adequate access, through employment, business or other
relationships, to information about the Company.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Resignation of Matthew S. Kressy as a Director
On February 17, 2021, Matthew S. Kressy resigned his position as a member of the
Company's Board of Directors, effective immediately. The resignation of Mr.
Kressy was not due to any disagreement on any matter relating to the Company's
operations, policies or practices. Mr. Kressy will remain an advisor to the
Company.
Appointment of Stuart A. Wilcox as a Director
On February 17, 2021, Stuart A. Wilcox was appointed a member of the Company's
Board of Directors, effective as of February 17, 2021, to fill the vacancy
existing on the Board pursuant to Mr. Kressy's resignation to serve until his
successor is duly elected and qualified or until his earlier resignation or
removal.
Mr. Wilcox, age 60, is a highly accomplished executive with over 30 years of
domestic and international experience, including multiple leadership roles in
the cannabis industry. Since September 2020, Mr. Wilcox has served as Chairman
of the Board of Ora Pharm, an international cannabis company based in New
Zealand. He is also a member of the Advisory Board for Revelation
Microelectronics, an Atlanta-based horticulture lighting and controls company,
and a Managing Partner of NuRevelation, a North Carolina-based biotech company.
From August 2017 to August 2020, Mr. Wilcox was the Chief Operating Officer of
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), during which time the
company grew into one of the industry's largest cannabis companies. From
September 2015 to October 2017, Mr. Wilcox was the Chief Operating Officer at
Hostess Brands, Inc. (NASDAQ:TWNK). Mr. Wilcox has been a strong advocate for
cannabis legislation to require product safety certifications for cannabis
operators, standardized product testing, and standard operating procedures. He
received an undergraduate degree in Engineering from the University of Toledo
(Ohio) and a graduate degree from Central Michigan University. The Company
believes that Mr. Wilcox's highly accomplished career as an executive combined
with his deep knowledge and experience in the cannabis industry makes him
qualified to be a member of the Company's Board.
There have been no transactions in the past two years to which the Company or
any of its subsidiaries was or is to be a party, in which Mr. Wilcox had, or
will have, a direct or indirect material interest.
In connection with his appointment to the Board, Mr. Wilcox was granted ten-year
options pursuant to the Plan to purchase 50,000 shares of the Company's common
stock at an exercise price per share of $13.84, the closing price of the
Company's common stock on The Nasdaq Capital Market on the date of grant, such
exercise price being the fair market value on such date. The stock options will
vest in equal monthly installments over 36 months beginning on the one month
anniversary of the grant date.
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