Agrify Corporation announced it entered into a definitive agreement with its existing customer Greenstone Holdings, LLC (“Greenstone”), a licensed operator in the state of Colorado, to complete the construction of a 25,000 square foot expansion of Greenstone’s Denver facility, significantly increasing the facility’s cultivation footprint. Under the terms of the agreement, Agrify will provide up to $2.5 million in construction loans at 18% APR, to be repaid over a 24-month period following commencement of operations. Construction is expected to begin in the second quarter of 2021 with the completed facility expected to be fully operational by the fourth quarter of 2021. In addition to the construction, Agrify will receive recurring fees over a 10-year period of up to $11 million to support the successful launch of Greenstone’s operations. Under the agreement, Agrify may also extend additional construction financing, which would be used to convert Greenstone’s existing traditional indoor grow facility with the addition of 200-220 VFUs and would provide Agrify the opportunity to earn an additional estimated $37 million in production-based fees and consulting services. As part of the deal, Agrify agrees to retire Greenstone’s current lease agreement with CCI-Finance, LLC, at 50% of the original face value of $1.4 million, or $700,000. The initial closing of the transactions contemplated by the agreement is expected to occur by May 30, 2021 and is subject to standard closing conditions.