AppHarvest Secures $91 Million Financing Arrangement With Equilibrium Capital for Construction of Rapidly Growing Network of High-Tech Controlled Environment Agriculture Facilities
July 27 2021 - 8:30AM
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 while using
up to 90% less water than open-field agriculture and only
rainwater, announced it has secured a financing arrangement with
Equilibrium Capital for $91 million. The arrangement will support
AppHarvest’s Richmond, Ky. facility already under construction.
The arrangement provides 65.5% loan-to-value financing through a
$91M construction loan for the 60-acre high-tech indoor farm
Richmond, Ky. designed to grow tomatoes.
“Equilibrium is a sustainability-focused investment firm with
institutional expertise in controlled environmental agriculture,
which makes AppHarvest a natural partner as they work to drive
positive change in agriculture to ensure food security
sustainably,” said Equilibrium CEO and Chairman David Chen. “We’ve
been supportive of AppHarvest since early in their history and look
forward to more opportunities to partner as they build out their
network of high-tech, climate-resilient farms.”
“Equilibrium sets the bar for impactful investing in assets and
companies centered on advanced sustainability principles. Their
continued support of our mission shows confidence in our business
model to build a climate-resilient food system based on
great-tasting, nutritious fresh fruits and vegetables with more
predictable yield and quality,” said AppHarvest Founder and CEO
Jonathan Webb. “Dave Chen and the Equilibrium team have been
tremendous partners. Working with the Equilibrium team is helping
us blaze new trails in sustainable business.”
AppHarvest plans to operate 12 farms by the end of 2025. The
company’s flagship 2.76-million-square-foot facility in Morehead,
Ky. is currently growing and shipping truckloads full of tomatoes
to top U.S. grocers and restaurants. Four additional farms are
under construction: a 60-acre facility in Richmond designed to grow
tomatoes, a 15-acre facility in Berea designed to grow leafy
greens, a 30-acre facility in Somerset designed to grow
strawberries, and a 15-acre leafy green facility in Morehead.
“AppHarvest is laser-focused on scaling its mission. The
financing we’re announcing today demonstrates the expected
viability of high loan-to-value, non-dilutive capital financing as
we remain on track to develop up to 12 high-tech farms by the end
2025,” said AppHarvest President David Lee.
About AppHarvest
AppHarvest is an applied technology company in Appalachia
developing and operating some of the world’s largest high-tech
indoor farms, designed to grow non-GMO, chemical pesticide-free
produce, using up to 90 percent 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 without 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.
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.
MEDIA CONTACT: Travis Parman,
Travis.Parman@appharvest.com
INVESTOR CONTACT: Kaveh Bakhtiari,
appharvestIR@appharvest.com
IMAGE/VIDEO GALLERY: Available here
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