Agrify Corp (NASDAQ:AGFY) shares are trading lower by 23.9% to $29.50 Thursday morning after the company announced it secured approximately $25.9 million through a non-brokered private placement.

What Happened: The deal, priced at $22.30 per share, involves securities purchase agreements with institutional and accredited investors. The proceeds will support general corporate purposes, including working capital and business development.

The private placement, expected to close on November 21, includes participation from Chairman and Interim CEO Benjamin Kovler, who purchased 10,000 shares at $38.76 each in accordance with Nasdaq requirements.

Kovler emphasized the strategic significance of the funding, calling it a "strong move" for the company and shareholders. "We plan to channel this capital into areas within our expertise to maximize shareholder value," he said, highlighting optimism around cannabis and hemp consumer trends.

Kovler also confirmed progress on the company's pending Señorita transaction, which is anticipated to close by year-end.

Read Also: The U.S. Cannabis Strategy No One's Talking About: Inside Canopy's $300M Plan

Should I Sell My AGFY Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

AGFY has a 52-week high of $42.00 and a 52-week low of $2.71.