secwatch.observer — SEC 8-K summary
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Issuer:     RYTHM, Inc. (RYM)
CIK:        0001800637
Form:       8-K
Filed at:   2025-01-06T23:59:59+00:00
Accession:  0001213900-25-000939
Event type: m_and_a
Sentiment:  positive
Materiality: 0.85
Item codes: 1.01, 2.01, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1800637/000121390025000939/0001213900-25-000939-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1800637/000121390025000939/ea0226802-8k_agrify.htm
  HTML page:      https://secwatch.observer/filing/0001213900-25-000939

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