Nature's Miracle Holding Inc. (NASDAQ:NMHI), a leader in farm machinery and equipment, has entered into a significant investment agreement with Future Tech Incorporated, an Ohio-based company, to construct a new data center and vertical farming facility.
The agreement, dated November 22, 2024, outlines that Nature's Miracle's subsidiary, NM Data Inc., will acquire a 51% stake in Future Tech. As part of the deal, NM Data will initially invest $200,000, followed by an additional investment of $2.8 million within the next 12 months.
This strategic move allows NM Data to appoint the majority of Future Tech's board directors and retain the authority to designate the CEO and CFO of the company. The completion of the deal is contingent upon Future Tech securing an electricity sales and purchase agreement and a ten-year lease with an option to buy the site specified in the contract.
The collaboration aims to establish a 50MW high-density data center and a vertical farming operation in Stryker (NYSE:SYK), Ohio, which marks a significant expansion for Nature's Miracle into the tech and sustainable agriculture sectors.
In other recent news, Nature's Miracle Holding Inc. has announced the creation of a subsidiary, NM Data Inc., to develop Bitcoin mining facilities, investing up to $3 million in Future Tech Incorporated. The company has also converted $2 million of its debt into equity, involving key management members and debt holders. Nature's Miracle implemented a one-for-thirty reverse stock split in response to a Nasdaq delisting notice due to non-compliance with minimum bid price requirements.
Other significant financial moves include the terms of a public offering aiming to raise approximately $3 million, managed by D. Boral (OTC:BOALY) Capital LLC.
Strategically, the company rebranded its subsidiary, Hydroman Inc., to Hydroman Electric Corporation, signaling a shift towards the electric vehicle sector. Nature's Miracle secured a $5.1 million sales agreement with What Rebates LLC and a $2.4 million purchase order from a major indoor grower in California for its Efinity brand grow lights. However, the company faces potential Nasdaq delisting due to non-compliance with market value requirements and plans to appeal this decision.
The company's Chief Operating Officer, Darin Carpenter, transitioned to a consulting role, and plans for a merger with Agrify Corporation have been mutually terminated.
InvestingPro Insights
Nature's Miracle Holding Inc.'s recent investment agreement with Future Tech Incorporated comes at a challenging time for the company, as reflected in its financial metrics. According to InvestingPro data, NMHI's revenue for the last twelve months as of Q3 2024 stands at $9.99 million, with a quarterly revenue growth of 13.46% in Q3 2024. This growth is a positive sign, especially considering the company's ambitious expansion into data centers and vertical farming.
However, the company's profitability remains a concern. NMHI's gross profit margin for the last twelve months is -5.13%, indicating challenges in its core operations. The operating income margin of -82.64% further underscores the company's struggle to achieve profitability.
InvestingPro Tips highlight that NMHI's stock price has experienced extreme volatility, with a staggering -99.27% year-to-date price return. This volatility aligns with the company's strategic shift and significant investment plans, which may be viewed as high-risk, high-reward moves by investors.
For those seeking a deeper understanding of NMHI's financial health and future prospects, InvestingPro offers 12 additional tips, providing a more comprehensive analysis to inform investment decisions.
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