Kentucky-based AppHarvest announces IPO

Kentucky-based AppHarvest announces IPO

According to the announcement, the company raised $475 million of gross proceeds as a result of the deal.

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February 1, 2021

In a press release, AppHarvest has announced its Initial Public Offering (IPO). The resulting company – AppHarvest, Inc – will be traded on Nasdaq effective Feb. 1 under the ticker symbols “APPH” and “APPHW.”

“Today marks an important milestone for AppHarvest and for American agriculture as we drive the next chapter of our growth as a public company,” said Jonathan Webb, founder and CEO of AppHarvest, “The capital we raised in this transaction will further advance our mission of transforming agriculture by developing large-scale sustainable food production in the heart of Central Appalachia. We currently import nearly half of all fresh vine crops sold in the U.S. To create a more resilient food system, we must farm more efficiently and closer to where the food is needed.”

As a result of the IPO, AppHarvest as received about $475 million of gross proceeds, including “$375 million from the fully committed common stock PIPE anchored by existing and new investors – including Fidelity Management & Research Company, LLC, Inclusive Capital and Novus Capital.” This provides the company with more than $435 million in unrestricted cash, which per the release, will be used to “fund operations, including building additional high-tech controlled environment indoor farms, support growth and for other general corporate purposes.”

“In a marketplace where consumers are more knowledgeable and conscientious than ever about the food they buy, we have a tremendous opportunity at AppHarvest to build a trustworthy sustainable foods brand that people care about,” said AppHarvest president David Lee. “Customers are craving better quality food options—and ones they can feel better about because the company is socially conscious and environmentally responsible. With our first harvest already underway and produce shipping to major grocery outlets, we reiterate our full-year 2021 guidance.”