AppHarvest, Inc. (NASDAQ: APPH, APPHW), a leading AgTech company,
public benefit corporation and Certified B Corp focused on
delivering fresh fruits and vegetables more sustainably using up to
90% less water than open-field agriculture and only rainwater,
today announced it has completed a deal with Rabo AgriFinance, a
subsidiary of Rabobank, to secure $75 million to fuel expansion of
its rapidly growing network of high-tech controlled environment
agriculture (CEA) facilities in Central Appalachia.
Under the credit facility, AppHarvest has entered into a 60%
loan-to-value mortgage at an anticipated fixed rate of between 4 to
5% for 10 years with amortization of debt over 20 years for its
flagship farm in Morehead, Ky., which began its first shipments of
produce in January of this year. The first farm is expected to be
capable of producing more than 40 million pounds of tomatoes
annually and currently is serving some of the top national grocery
store chains and food service outlets such as Kroger and
Wendy’s.
AppHarvest has announced that its development plan calls for a
network of 12 high-tech farms by the end of 2025. The company
expects to expand production next year to include leafy greens and
strawberries.
“The market is showing significant interest in the AppHarvest
business model that’s driven by environment, governance and
sustainability (ESG) principles to build a climate-resilient food
system with more predictable yield and quality. This credit
facility represents a new milestone in terms of our funding and
demonstrates that we are capable of securing attractive
non-dilutive financing for the network of 12 high-tech indoor farms
we’re working to develop by the end of 2025,” said AppHarvest
Founder and CEO Jonathan Webb.
AppHarvest reported its first quarterly performance on May 17
announcing that net sales for the first quarter of 2021 was in line
with guidance and reiterated that the company remained on track for
its long-term guidance. The company has two high-tech farms under
construction—one in Berea, Ky. designed to grow leafy greens, and
another in Richmond, Ky. planned for tomatoes. As announced on May
17, two more projects also are expected to begin construction this
year.
“Our priorities are achieving operational excellence and our
financial targets, optimizing our capital structure for
capital-efficient growth and building a trusted, high-tech
sustainable foods company with the highest ESG principles,” said
AppHarvest President David Lee. “In addition to the Rabo
AgriFinance deal, we are far along in negotiations for
approximately $200 million of development financing for two of our
facilities that are currently under construction. These deals
demonstrate the viability of high loan-to-value, non-dilutive, and
low-rate financing for our facilities and business. This capital
will support our continued development of 12 high-tech farms by the
end of 2025, which remains on track.”
"As one of the largest agricultural lenders in the United
States, we see partnering with AppHarvest as a natural fit to help
fund their farms of the future," said Shawn Smeins, Head of Rural
North America for Rabo AgriFinance. "We believe the AppHarvest
model shows great promise with its aim to create a
climate-resilient food system that addresses environmental
challenges with a sustainable approach, which is in-line with our
values. We are pleased to partner with AppHarvest on their
long-term growth plans."
About AppHarvest
AppHarvest is an applied technology company in Appalachia
building some of the world’s largest high-tech indoor farms that
grow non-GMO, chemical pesticide-free produce using up to 90% less
water than open-field agriculture and only recycled rainwater while
producing yields up to 30 times that of traditional agriculture on
the same amount of land with zero agricultural runoff. The Company
combines conventional agricultural techniques with cutting-edge
technology including artificial intelligence and robotics to
improve access for all to nutritious food, farm more sustainably,
build a more reliable domestic food supply, and increase investment
in Appalachia. The Company’s 60-acre Morehead, Ky. facility is
among the largest indoor farms in the world. For more information,
visit www.appharvest.com.
About Rabo AgriFinance
As a leading financial services provider for agricultural
producers and agribusinesses in the United States, Rabo AgriFinance
adds value using industry expertise, client-focused solutions, and
by creating long-term business relationships. Rabo AgriFinance
offers a comprehensive portfolio of services that gives producers
the right products to prepare for, and take advantage of, market
opportunities. This comprehensive suite of services includes loans,
insurance, input finance and effective risk management products.
Rabo AgriFinance is a subsidiary of Rabobank, a premier bank to the
global agriculture industry and one of the world’s largest and
strongest banks. Rabobank is an equal opportunity provider.
Forward-Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,”
“would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
All statements, other than statements of present or historical fact
included in this press release, regarding AppHarvest’s intention to
build high-tech CEA farms, the anticipated benefits of and
production at such facilities, AppHarvest’s future financial
performance, as well as AppHarvest’s growth plans and strategy,
ability to capitalize on commercial opportunities, future
operations, estimated financial position, prospects, plans and
objectives of management are forward-looking statements. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of AppHarvest’s management and are not predictions of actual
performance. These forward-looking statements are provided for
illustrative purposes only and are not intended to serve as, and
must not be relied on as, a guarantee, an assurance, a prediction,
or a definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of AppHarvest. These forward-looking statements
are subject to a number of risks and uncertainties, including those
discussed in the Company’s Quarterly Report on Form 10-Q filed with
the SEC on May 17, 2021 under the heading “Risk Factors,” and other
documents AppHarvest has filed, or that AppHarvest will file, with
the SEC. If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. In addition,
forward-looking statements reflect AppHarvest’s expectations,
plans, or forecasts of future events and views as of the date of
this press release. AppHarvest anticipates that subsequent events
and developments will cause its assessments to change. However,
while AppHarvest may elect to update these forward-looking
statements at some point in the future, AppHarvest specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing AppHarvest’s assessments
of any date subsequent to the date of this press release.
Accordingly, undue reliance should not be placed upon the
forward-looking statements.
APPHARVEST CONTACT: Travis Parman,
Travis.Parman@appharvest.com RABOBANK CONTACT:
Brandon Souza, Brandon.Souza@rabobank.com IMAGE/VIDEO
GALLERY: Available here
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