---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-25-000939"
form_type: "8-K"
ticker: "RYM"
cik: "0001800637"
company_name: "RYTHM, Inc."
filed_at: "2025-01-06T23:59:59+00:00"
generated_at: "2026-05-28T11:18:11.051382+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Agrify sells cultivation business to former CEO affiliate; focus shifts to hemp-derived THC drinks

## Summary
- Dec 31, 2024 signed and closed asset sale of Cultivation Business (VFUs, TTK, Agrify Insights) to CP Acquisitions LLC, affiliate of former Chairman/CEO Raymond Chang.
- Consideration: CP assumed ~$7M of secured indebtedness and other liabilities; no cash received by Agrify.
- Agrify will focus on hemp-derived THC Delta 9 beverages, including Señorita THC Margarita, available in 9 states and online.
- Pro forma financials show estimated pre-tax loss on sale of ~$15.8M; net assets sold (liabilities assumed) of $20.6M.
- Related party debt of ~$6.7M forgiven as part of consideration; warrants cancelled.

## SEC filing metadata
- accession: 0001213900-25-000939
- form_type: 8-K
- ticker: RYM
- cik: 0001800637
- company_name: RYTHM, Inc.
- filed_at: 2025-01-06T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 2.01, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1800637/000121390025000939/0001213900-25-000939-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1800637/000121390025000939/ea0226802-8k_agrify.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-25-000939
- JSON: https://secwatch.observer/filing/0001213900-25-000939.json
- Plain text: https://secwatch.observer/filing/0001213900-25-000939.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.