Morehead, Ky.-based AppHarvest is going public.
The indoor farming company has made a business combination agreement with Novus Capital Corp., which will provide $475 million of gross proceeds to AppHarvest, according to a news release.
This agreement includes $375 million fully committed common stock PIPE (private investment in public equity) at $10 per share anchored by existing and new investors — including Fidelity Management & Research Co., Inclusive Capital and Novus Capital Corp.
With minimal redemptions, the transaction provides AppHarvest more than $435 million of unrestricted cash at close to fund operations, including building more controlled environment indoor farms, according to the release.
The transaction advances AppHarvest’s mission to build America’s agtech capital in Appalachia through the development of several large-scale, controlled indoor farms, according to the release.
The combined company will be named AppHarvest, led by Jonathan Webb, AppHarvest’s founder and CEO.
“AppHarvest is working to solve the critical need for a more resilient and sustainable food supply chain — both of which are fundamental to the future of farming, our food ecosystem and our ability to ensure food security,” David Lee, chief financial officer of Impossible Foods and AppHarvest board member, said in the release.
AppHarvest operates a 60-acre controlled environment greenhouse in Morehead, where the first produce scheduled to be harvested, in early 2021, will be tomatoes.