An investigation on behalf of investors in Agrify Corporation (NASDAQ: AGFY) shares over potential wrongdoing at Agrify Corporation was announced.
San Diego, CA — (SBWIRE) — 04/15/2022 — An investigation was announced over potential breaches of fiduciary duties by certain officers and directors at Agrify Corporation.
Investors who purchased shares of Agrify Corporation (NASDAQ: AGFY) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain Agrify Corporation directors breached their fiduciary duties and caused damage to the company and its shareholders.
Burlington, MA based Agrify Corporation develops precision hardware and software grow solutions for the indoor agriculture marketplace primarily in the United States.
Agrify Corporation reported that its annual Total Revenue rose from $4.08 million in 2019 to $12.08 million in 2020, and that its Net Loss increased from $3.04 million in 2019 to $21.61 million in 2020.
On December 16, 2021, Bonitas Research, a short seller, released a report alleging multiple problems with Agrify Corporation. The allegations include that “We believe that Agrify created artificial demand for its product by financing undisclosed Company insiders to act as independent customers.” Further stating, “after its January 2021 IPO, Agrify’s shares soared amongst a wave of sales announcements to alleged independent third party licensed commercial growers via new total turnkey partnerships (‘TTK Partnerships’).” The report added, “the TTK Partnerships use Agrify’s balance sheet to finance the construction of the customer’s facility, equipment sales and installations, which suggests to us that Agrify’s recorded revenues are artificially inflated by loan balances from Agrify to TTK Partnership customers.”
Shares of Agrify Corporation (NASDAQ: AGFY) declined from $15.67 per share on December 8, 2021, to as low as $7.33 per share during January 19, 2022.
Those who purchased shares of Agrify Corporation (NASDAQ: AGFY) have certain options and should contact the Shareholders Foundation.
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