Tuesday was a significant day for the future of agriculture as AppHarvest announced plans to join the Nasdaq and become a publicly traded company via a special purpose acquisition company, or SPAC, deal.
AppHarvest will attain its listing after merging with SPAC Novus Capital Corp. (Nasdaq: NOVS).
AppHarvest is a Kentucky-based, green-tech agriculture company that plans on redefining American agriculture by delivering 45 million pounds of produce every year once it opens. The company has managed to make this feat look easy by becoming the largest greenhouse in the U.S. — AppleHarvest will reportedly be big enough to feed the entire Eastern Seaboard.
This mammoth of a greenhouse is showing the world what a large-scale, modern indoor farm can look like with the help of Dutch greenhouse technology.
The AppHarvest SPAC deal sets the green-tech company’s value at $1 billion, based on a price of $10 per share. The deal also allows AppHarvest to get $475 million in gross proceeds from the transaction — which the company plans to use to take indoor farming to the next level.
Notable investors include Fidelity Management & Research Company and Inclusive Capital.
However, $375 million of the $475 million comes from what’s known as a PIPE, a private investment in public equity.
With all of the pieces falling into place for the AppHarvest SPAC, you have to wonder what this means for the agriculture and tech sector.
The AppHarvest SPAC deal that hit the markets caused Novus Capital to shoot up 20% as soon as merger plans went public Tuesday.
And I can get behind that — it makes sense to invest in a company like this when COVID is showing people how important it is to be self-sufficient… and efficient when it comes to having enough produce for everyone.
Might I remind everyone of the toilet-paper fiasco earlier this year?
Now more than ever, people need quality food, and they need to know where it came from and that it is safe. Even grocery stores are getting behind the grass-fed movement by including more and more local and organic produce options.
The world of agriculture needs to change in order to meet the demands of rapidly growing and hungry consumers — and it looks like AppHarvest is poised to do something about it.
I also want to hear your thoughts on the AppHarvest SPAC. Let me know in the comment section below if you will invest, and why.