AgTech business AppHarvest has said it will go public through a merger with a blank-check company in a deal that will value the business at $1 billion.
As part of the deal together with Novus Capital Corp, which will be a special purpose acquisition company (SPAC), AppHarvest will receive $475 million from new and existing investors like Fidelity Management, Inclusive Capital and Novus Capital.
Novus Capital’s shares rose 19.7% to a record high of $12.07 on Tuesday.
Kentucky-based AppHarvest assembles large indoor farms and greenhouses from the Appalachia area of the United States. Throughout its farms, the company is seeking to help increase crop yields and enhance access to non-GMO meals, or food that is not genetically modified.
A blank-check firm, also known as a SPAC, utilises capital raised through an initial public offering to purchase a private company, usually within two decades. Investors are not notified in advance what the SPAC will buy.
SPACs have emerged as a fast path to the stock market for companies, especially automobile technology start-ups, worried about the chance of the protracted IPO process.
In some cases, these companies also have struggled to draw interest from institutional investors like pension funds and venture capital companies.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Madhvi Pokhriyal in Bengaluru. Editing by Maju Samuel.
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