Agrify Corporation (AGFY) Raises $25.9M to Fuel THC Beverage Expansion

We recently compiled a list of the 12 Cheap Pot Stocks to Buy According to Hedge Funds. Agrify Corporation stands tenth on our list.

Agrify Corporation (NASDAQ:AGFY) is transitioning from its roots in cultivation technology to a consumer-focused model centered on hemp-derived THC beverages. The company, known for its vertical farming units (VFUs) and cultivation software, recently sold its cultivation business and related assets to CP Acquisitions LLC, linked to former CEO Raymond Chang. This move allows the company to streamline operations and shift focus toward the rapidly growing THC beverage market.

A key part of this pivot is the acquisition of Señorita, an award-winning hemp-derived THC beverage brand known for flavors like Mango Margarita and Lime Jalapeño Margarita. Distributed in nine U.S. states and Canada, the brand aligns with rising consumer interest in low-calorie, alcohol-free cannabis alternatives. Agrify Corporation (NASDAQ:AGFY) is increasingly mentioned among cheap pot stocks to buy due to its low market valuation and growth potential in this segment. The company plans to expand the product line with new offerings such as Paloma and Ranch Water.

To support this new direction, the business raised $25.9 million in a private placement in late 2024, with Chairman and Interim CEO Ben Kovler personally participating, signaling leadership’s confidence in the strategy. The funding will help scale beverage operations and explore additional cannabis product opportunities.

Agrify Corporation (AGFY) Raises $25.9M to Fuel THC Beverage Expansion

Governance changes also reflect the company’s new consumer focus. Peter Shapiro, with entertainment industry experience, and Sanjay Tolia, a cannabis investor, joined the board in early 2025, bringing expertise in branding and market growth.

While we acknowledge the risk and potential of AGFY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGFY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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