Welcome to iGrow News, Your Source for the World of Indoor Vertical Farming
How Family Investors Can Reap What They Sow In Vertical Farming With Vertical Future
Issues surrounding the increasing population of the world combined with water scarcity in a changing climate and the security of food and supply chains exposed by the coronavirus pandemic have all seeded minds on the possibilities of vertical farming
12 NOVEMBER, 2020 | BY JAMES BEECH
Vertical farming is being planted as the future of agriculture and the blossoming sector’s long-term growth could be a good fit for family investors and their patient capital.
Issues surrounding the increasing population of the world combined with water scarcity in a changing climate and the security of food and supply chains exposed by the coronavirus pandemic have all seeded minds on the possibilities of vertical farming.
CampdenFB asked Jamie Burrows, co-founder, and chief executive of Vertical Future, what the nascent sector really means for family investors looking to harvest returns, how his company is innovating in the field, and if families could host a vertical farm on their own property.
Why should families which are not directly involved in or have knowledge of crop health and food production consider investing in Vertical Future and vertical farming?
Families should consider investing in Vertical Future because without sustainable, scalable vertical farming—which is one of the solutions required to deal with the rising global food challenge—the future of our food, crop health, human health, and planetary health are all at risk.
Scientific literature, prominent scientists, and leading figures such as Sir David Attenborough, building on decades of research and lived experience, have shown the gravity and complexity of the issues that we face as a global, interconnected ecosystem.
Over the past 50 years, there has been a significant decrease in biodiversity, a significant increase in population growth, density, and physical expansion, an overall reduction in the quality of food, and an increase in the intensification of farming and use of pesticides. To contextualize this, one of every eight species of plants face extinction, one-third of soil faces degradation, and insect populations, which form a vital part of the food system, are seriously under threat. For these reasons and many others, food, next to water and sustainable forms of energy, must surely be the investment classes of today. Without these, the future is at risk.
Vertical Future is also, at its core, a family business, established by a husband and wife couple in 2016. My wife Marie-Alexandrine, as chief people officer, and I as chief executive, both came from careers in health and life sciences, with no prior knowledge of farming, let alone vertical farming. We believed in the importance of using technology to bring about health improvement and this is our main reason for establishing the company, which constantly strives to achieve this goal. Marie and I simply want a better and healthier future for our children, Gabrielle and Caspien, and a healthy planet for all.
What is vertical farming, how does it work and what does it achieve?
Vertical farming is the practice of growing crops indoors under controlled conditions in stacked layers or on vertical walls, typically using high-efficiency LED lighting and an either hydroponic or aeroponic method of irrigation, instead of soil.
Growing in this type of environment means that produce can be grown sustainably without the use of pesticides, herbicides, or fungicides. It also means that crops can be grown in an optimal manner, increasing output/yield, also relieving pressure on increasingly scarce farmland, encouraging rewilding, and an overall increase in biodiversity. Technological approaches continue to improve, meaning lower water utilization, less energy, and less waste. Moreover, automation, clever systems design, and robotics are allowing vertical farming systems to grow a broader variety of produce, aligning with customer demands.
What makes Vertical Future the market leader in vertical farming?
The global vertical farming market is beginning to receive a significant amount of interest and investment however, much of this is focused on older, first-generation technologies, and models that are not futureproof, and some will potentially fail. Like many other young and nascent markets, there is a tendency for investors to back brands that are perceived to be likely to grow the fastest instead of investing in sustainable technology solutions. Vertical farming, from Vertical Future’s standpoint, should be considered as a medium-to-long-term infrastructure investment. Much like building a hospital to care for the betterment of health and wellbeing, a vertical farm does much the same thing, growing healthy, local food that forms a vital part of the local circular economy.
Leveraging its years of running vertical farms in central London, where the Vertical Future team were at the time used other companies’ technologies, the company has developed a clear and concise understanding of what works, what needs improving, and what innovations are required to grow and succeed in the sector. The last 18 months have focused on building a holistic, integrated, fully-automated vertical farming system—integrating hardware and software—that is future proof, addressing all the issues that exist with other competitors’ systems.
Importantly, the Vertical Future team is built on experience, with more than 200 years of senior-level experience across the engineering and plant science teams alone. Several talented developers lead the company’s software efforts, with data forming an important part of the vertical farming opportunity. The leadership team is also supported by an experienced board, including the former head of the National Health Service, which is the second-largest health organization in the world, and the former chief marketing officer of Deliveroo.
Despite Covid, in the past six months alone the company has already begun to sell its systems through technology sale and software licensing and has generated more than £300 million ($397 million) of prospective pipeline opportunities, across four continents. This adds to ongoing support and recognition from the UK Department for International Trade, with the company winning numerous national and international competitions and being a part of the London Mayor’s International Business Programme.
Research and development (R&D), which is engrained throughout Vertical Future’s activities, shows a 75% success rate in grant funding applications and more than half a million pounds in revenue for the next 18 months alone. This includes collaborative projects ranging from seed sterilization through plasma treatment through to the growing of root extracts for the phytopharmaceutical industry, targeting the development of a novel respiratory drug.
The combination of Vertical Future’s technologies, growing experience, R&D program, experienced team, and pipeline put it in a market-leading position. Considering the importance of the underlying issues that vertical farming aims to address, Vertical Future believes that it is important that investors back sustainable models that are likely to succeed and grow the market.
Where are you vertical farming, is it scalable and where is the produce being supplied?
Vertical Future’s operations to date have been based out of a converted space in Deptford, located about 10 minutes from London Bridge station. The company grew its consumer-focused brand MiniCrops, which today supplies more than 110 restaurants across London and thousands of homes. This was an initial proof of concept, using other companies’ technologies before the company built out its technology proposition. The resulting proprietary technology solution is modular, scalable, affordable, and recognized for its differentiating factors in comparison to other vertical farming systems globally.
How will Vertical Future invest the capital it is looking for?
The focus is on scaling the company to realize the full potential of the vertical farming market. This starts with the build-out of the largest vertical farm in the world, located in London, building on Vertical Future’s client network and existing growing operations.
The second aspect of scale focuses on expanding Vertical Future’s physical footprint in key target geographies, including the development of manufacturing facilities to further improve margins and deployment of sales, technical, and marketing teams. The final element of the round focuses on the improvement of Vertical Future’s existing hardware and software technologies.
What kind of returns are expected for family investors?
The company’s sales model has been built for profitability, with a positive EBITDA [earnings before interest, taxes, depreciation, and amortization] expected in 2022. The Vertical Future team expects there to be an opportunity for a Series B round in several years’ time, in advance of a potential exit, or partial exit, in 2024/25, likely through an Initial Public Offering (IPO) or trade sale. With the growing popularity of vertical farming and the evident need for sustainable food solutions, the company expects there to be ample interest from prospective buyers in a variety of sectors. A trade sale or partial exit would be expected to be at a price 3-5x (minimum) of the current round, with an IPO potentially offering substantially higher returns.
How can families incorporate vertical farming on their own real estate?
As this is a very new industry, Vertical Future is not aware of any examples of families incorporating vertical farming in their own real estate. However, there are clearly massive opportunities to do so.
Families that have access to or own retail-focused assets, manufacturing capabilities, or assets in strategically positioned areas can both benefit and add value to Vertical Future’s growth plans. For example, commercial real estate located in urban areas can provide opportunities for systems integration, effectively eradicating food miles and providing a constant, year-round supply of fresh produce to local buyers. Similarly, real estate located close to target geographies could be used to increase the rate of expansion, providing land for development of manufacturing sites, or if manufacturing facilities already exist, eradicate the need for new sites.
Where do you want to see Vertical Future’s vertical farming venture in five years?
Food, water, and sustainable energy are—in Vertical Future’s view—the main investment categories of the future. In five years, the Vertical Future team wants to be an internationally recognized brand with its technologies and sites spread across the world. Each site will be sustainable and purpose-driven, producing healthy, affordable food for local inhabitants and improving their quality of life, job opportunities, and level of education. Through their connection via smart data infrastructure, the sites will be on a path of continual improvement. For rural locations, energy independence, accomplished through integrated, off-grid solutions, will be a reality.
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About the Author
Editor
James Beech is the multimedia Editor of CampdenFB, with 21 years of international experience in daily newspapers, B2B and consumer magazines, online, social media, photographic and video journalism, in addition to editorial management, marketing, public relations and client relations, in the United Kingdom, Australia and New Zealand. He graduated from Bournemouth University in 1999.
Tech Startup iFarm Raises U.S. $4 Million to Expand Do-It-Yourself Urban Farms
Most urban farming companies do one of two things: grow and sell their own food or manufacture technology to assist experienced farmers, such as LED lights and robots that can monitor and harvest produce
The Finnish technology startup iFarm recently raised US$4 million to build vertical farms for more customers across Europe and the Middle East. Using these funds, iFarm aims to help more entrepreneurs and businesses set up their own urban farms—at any time, in any place.
iFarm, founded in 2017, develops autonomous farming systems to grow greens, berries, and edible flowers indoors. It sells smaller, individual growing modules, as well as vertical farms for larger-scale production.
Most urban farming companies do one of two things: grow and sell their own food or manufacture technology to assist experienced farmers, such as LED lights and robots that can monitor and harvest produce.
iFarm falls into a third, less common category. Rather than standalone technology, the company sells entire urban farming systems with built-in robotics. These systems enable customers to start farms with little to no knowledge of agriculture.
iFarm’s growing module, iFarm Cropper, is designed for grocery stores, restaurants, or homes. Their vertical farms are intended for larger spaces, like warehouses. These systems are equipped with drones and artificial intelligence that spot diseases and track plant growth. They can also be controlled by an app, iFarm Growtune, that automatically plants seeds and adjusts lighting and humidity.
Kirill Zelenski, the Managing Director of Europe at iFarm, tells Food Tank that the company’s name is reminiscent of the iPhone. With an iPhone, he says, “you don’t need to know anything… You just need to know what you want to do, and it will do it itself. Same with our farms.” He explains that a customer simply has to push a button to grow arugula, and the system knows what to do.
Urban farming companies boast several ecological, economic, and health benefits. iFarm’s technology, for instance, uses 90 percent less water and 75 percent less fertilizer compared to conventional farms, and no pesticides.
Controlled climates inside urban farms reduce the risk of air and water pollution, while allowing for more reliable yields. iFarm reports that 100 percent of their seeds sprout.
Indoor farms can also exist anywhere. The urban farming company Square Roots, for example, grows greens in the heart of Brooklyn. This flexibility cuts down on land use—which is increasingly sparse—and improves access to fresh food in urban areas.
iFarm’s founder, Alex Lyskovsky, decided to start the company for exactly that reason: his hometown in Siberia lacked access to fresh food. Now, thanks to iFarm, says Zelenski, “Even sitting in Finland, I can grow—for example—tomatoes like they would be grown in Sicily.”
Zelenski imagines a world where proximity to farmland no longer dictates where people reside. “Our idea is that it will change the world and how people are living. Because of the possibility to build farms in every house, you can live wherever,” Zelenski tells Food Tank.
Zelinski believes that autonomous farming companies—particularly those that sell already-programmed systems—have the potential to radically reshape the industry. “Modern farmers,” as he calls them, won’t necessarily need to know how to farm.
However, there are downsides. Zelenski notes that iFarm’s drones reduce the need for labor by 800 hours per month, which boosts efficiency and saves farm owners money—but could also threaten job security for farm workers.
iFarm isn’t the only company selling urban farms. Manhattan-based Farm.One offers everything from single-plant hydroponic units to entire vertical farming setups. InFarm, based in Berlin, installs its modular setups in grocery stores. And companies like Agrilution, Rise Gardens, and Aspara sell in-home hydroponic systems.
As for iFarm, the company plans to put half of its recent funding towards scaling up in Europe and the Middle East, 30 percent into research and development, and the remaining 20 percent into internal management and hiring.
The company plans to leave a big mark on the agriculture industry. “We think our technology will change not just [farmers’] work, it will change the world totally,” Zelenski tells Food Tank. “Our idea totally disrupts the industry.”
October 30, 2020
With $68m In Fresh Funding, Revol Greens Plans To Build The World’s Largest Indoor Farm
“We need to have more [CEA] projects around the country and around the world. It is a very efficient way to grow food and a better way to grow food sustainably for the future. So, I am happy that it has moved into somewhat more mainstream investing.”
October 7, 2020
The controlled environment agriculture (CEA) space appears to be in a race, with startups jostling to see which can build the biggest facility or supply the most produce. Owatonna, Minnesota-based Revol Greens is throwing its hat in the ring, having recently raised $68 million in Series A funding. Greenhouse-hungry VC Equilibrium Capital led the round, which brings the startup’s investment total to $215 million.
“Greenhouses are the tech disruptor in a 10,000-year-old agriculture sector,” Equilibrium CEO David Chen said in a press release announcing the funding. “[The firm’s] investment strategy is to find the industry leaders that will create the future of agriculture. Revol Greens [is] poised to be one of those tech-driven disruptive agriculture market leaders.”
Launched in 2016, Revol Greens is the brainchild of an interdisciplinary team composed of the founder of local farm Bushel Boy, a greenhouse grower from Amsterdam, and a horticulture consultant. It employs closed-loop hydroponics to grow lettuces in a system that uses 90% less water than traditional open-field agriculture, according to the startup. Its glass greenhouses also mitigate the need for pesticides, herbicides, or other chemicals.
Revol and Equilibrium have taken a slightly different approach to finance their CEA expansion. Equilibrium is footing the bill for the construction of the facilities, which Revol will then lease from the VC.
With that funding, the startup is planning to build a new, 80-acre greenhouse complex in Texas – which it claims will be the largest such facility globally. It also recently inked the paperwork for a California installation that will be operational in the first quarter of 2021. With these two locations plus its home base in Minnesota, Revol is positioning itself to access key markets.
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“With these three cities we will have taken a pretty big chunk of the country west of the Mississippi,” Mark Schulze, the newly appointed CEO of Revol, told AFN. He joined the startup in March 2020 after three decades working for Cargill in domestic and global leadership roles. Delivering produce within 24 hours of harvest is a key goal for the startup.
“There are other expansions that are going on like AppHarvest, but it has never grown lettuce,” he said, referring to the rival CEA startup. “There is a lot of money there but we have been growing lettuce since 2018. We have done thousands of trials on seeds to know what seed provides the best characteristics and quality for our consumers. We’ve done massive innovations in the process that are different from off-the-shelf greenhouses that you can buy.”
Revol is also focusing on scale. With its 10 to 20-acre facilities it’s hoping to drive down costs so it can provide a price-competitive product, Schulze added.
“We don’t have to be priced at two times the imported price of West Coast lettuce.”
Last week, Kentucky-based AppHarvest announced a merger with NASDAQ-listed Novus Capital, enabling it to go public. The deal is slated to bring in $475 million in gross proceeds.
“I think [that deal] certainly raised the profile of the space. I think that’s terrific,” Schulze said.
“We need to have more [CEA] projects around the country and around the world. It is a very efficient way to grow food and a better way to grow food sustainably for the future. So, I am happy that it has moved into somewhat more mainstream investing.”
AppHarvest, A Pioneering Developer and Operator of Sustainable, Large-Scale Controlled Environment Indoor Farms, To Become A Public AgTech Company
Operates a 60-acre controlled environment agriculture facility in Morehead, KY — one of the largest high-tech greenhouses in the world — and has an active and robust development pipeline for future large-scale controlled environment indoor farm projects
September 29, 2020 | Source: AppHarvest
AppHarvest has entered into a definitive business combination agreement with Novus Capital Corporation (Nasdaq: NOVS)
Transaction to provide $475 million of gross proceeds to the company, including $375 million fully committed common stock PIPE at $10.00 per share anchored by existing and new investors – including Fidelity Management & Research Company, LLC, Inclusive Capital, and Novus Capital Corporation
Pro forma equity value of the merger is approximately $1.0 billion, at the $10.00 per share PIPE price and assuming minimal Novus shareholder redemptions
Transaction advances AppHarvest’s mission to redefine American agriculture and to build America’s AgTech capital in the heart of Appalachia through the development of several large-scale controlled indoor farms
MOREHEAD, Ky., Sept. 29, 2020 (GLOBE NEWSWIRE) -- AppHarvest (“the Company”), a developer and operator of large-scale, high-tech controlled environment indoor farms, and Novus Capital Corp. (Nasdaq: NOVS) (“Novus Capital”), a publicly-traded special purpose acquisition company, announced today a definitive agreement for a business combination that would result in AppHarvest becoming a public company. Upon closing of the transaction, the combined company will be named AppHarvest and is expected to remain listed on Nasdaq under a new ticker symbol. The combined company will be led by Jonathan Webb, AppHarvest’s Founder & Chief Executive Officer.
Company Overview
AppHarvest is redefining American agriculture by developing modern, large-scale and efficient indoor farms in Central Appalachia, a water-rich region strategically located within a day’s drive of approximately 70% of the U.S. population. AppHarvest has strong relationships with the leading agricultural and construction firms and universities in the Netherlands, the world’s leader in high-tech controlled environment indoor farms. The Netherlands, despite a land mass similar in size to Eastern Kentucky, is the world’s second-largest agricultural exporter behind only the United States due to its extensive network of controlled environment agriculture facilities. These relationships allow the Company to utilize the most recent proven technologies in an effort to sustainably increase crop yields, improve access to nutritious, non-GMO food, build a consistent and safe U.S.-grown food supply for national grocers, and increase investment in Appalachia. The Company operates a 60-acre controlled environment agriculture facility in Morehead, KY — one of the largest high-tech greenhouses in the world — and has an active development pipeline for additional large-scale indoor controlled environment farm projects.
Upon the closing of the transaction, AppHarvest will retain its highly experienced management, a team of growers with over 140 years of agricultural experience, including 120 years of sustainable agriculture experience, a sustainability team with more than 40 years of experience; and construction managers who have successfully managed over $19 billion in projects.
In addition, AppHarvest announced that Peter C. Halt has joined the executive team as Chief Financial Officer. Mr. Halt is a seasoned finance professional with several years of experience as a publicly-traded company CFO, most recently having served as the CFO for TiVo Corporation, up until its announced acquisition by Xperi Corporation.
AppHarvest Investment Highlights
Operates a 60-acre controlled environment agriculture facility in Morehead, KY — one of the largest high-tech greenhouses in the world — and has an active and robust development pipeline for future large-scale controlled environment indoor farm projects
First produce scheduled to be harvested, in early 2021, will be tomatoes, a crop that has seen imports rise to 60% of all fresh tomatoes available in U.S. stores
Designed to reduce water usage by 90% compared to traditional open-field agriculture and eliminate agricultural runoff
Aims to improve access to fresh non-GMO fruits and vegetables, as approximately 70% of the U.S. population is within a one-day drive of the Morehead, KY facility, which AppHarvest estimates will lower transportation costs compared to existing growers by up to 80%
Positioned to capitalize on the secular shift to plant-based foods, creating increased demand for locally grown, high-quality produce
Experienced leadership team and board of directors with experience in sustainable investing
Promoting sustainable change in agriculture as a Public Benefit Corporation, registered with Delaware, and a B Corporation, independently certified by the non-profit B Lab
Long-term distribution agreement in place to reach top grocers in the United States
“We are excited to transition AppHarvest to a public company and raise nearly a half a billion dollars in the process,” said Jonathan Webb, Founder & Chief Executive Officer of AppHarvest. “This will allow us to pursue our mission of transforming agriculture. A mission that’s become even more important since the global pandemic exposed how a rapidly increasing reliance on imports jeopardizes food security. We now know that to build a more resilient food system that meets our growing population demands, we must immediately start building controlled environment agriculture facilities, as these farms use far fewer resources to grow far more produce. We believe that this partnership with Novus Capital is a transformative transaction which will allow us to both rapidly scale our agriculture facilities, in pursuit of our goal to redefine American agriculture and build the country’s AgTech capital within Appalachia. Together we can transform agriculture.”
Bob Laikin, Chairman of Novus Capital, commented, “AppHarvest is a unique and compelling investment opportunity that is redefining American agriculture by improving access for all to fresh non-GMO produce, growing more with fewer resources, and creating an AgTech hub from within Appalachia. With significant tailwinds from heightened investor focus on ESG initiatives and the secular shift to plant-based foods, we believe AppHarvest is well-positioned to execute on its strategy for rapid growth and value creation.”
David Lee, Chief Financial Officer of Impossible Foods and AppHarvest Board Member, said, “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. I believe the company is building a scalable business that could revolutionize the business of food production in the United States.”
Dave Chen, CEO of Equilibrium Capital and AppHarvest Board Member, commented, “Jonathan Webb is exceptional at getting big complex projects done fast and with the highest precision. He is the right leader for AppHarvest’s disruptive mission. Furthermore, with his leadership, AppHarvest has drawn together some of the most talented individuals in the AgTech industry to drive the needed scale. I am extremely excited to see the fruits (or vegetables as the case may be!) of this team’s labors, as they execute on their plans to change food production in the United States.”
Martha Stewart, Founder of Martha Stewart Living Omnimedia and AppHarvest Board Member, said, “All Americans should believe in the AppHarvest mission to develop large-scale sustainable food production in the heart of Central Appalachia. Jonathan and his exceptional team are disrupting the food production ecosystem in the best way — to provide better, healthier food in a more sustainable manner.”
J.D. Vance, Narya Capital Partner, and AppHarvest Board Member, said, “AppHarvest is developing a world-class food production ecosystem to benefit a majority of consumers in the United States, right here from Central Appalachia. This region offers tremendous resources in terms of location, and in terms of the skilled hardworking people of the region who make this incredible mission possible.”
Jeffrey Ubben, Founder and Managing Partner of Inclusive Capital Partners and AppHarvest Board Member, said, “Our investment platform is about leveraging capitalism and governance in pursuit of a healthy planet and the health of its inhabitants — and AppHarvest is perfectly aligned with this mission.”
Transaction Overview
The business combination values AppHarvest at a $1.0 billion pro forma equity value, at the $10.00 per share PIPE price, and assuming minimal redemptions by Novus Capital shareholders. The transaction will provide $475 million of gross proceeds to the company, including $375 million fully committed common stock PIPE at $10.00 per share anchored by existing and new investors – including Fidelity Management & Research Company, LLC, Inclusive Capital and Novus Capital Corporation. Assuming minimal redemptions, it is anticipated that this transaction provides AppHarvest over $435 million of unrestricted cash at close, which will primarily be used to fund operations, including building additional high-tech controlled environment indoor farms, support growth, and for other general corporate purposes. In addition, AppHarvest issued a $30 million convertible note to Inclusive Capital which funded on September 28, 2020. The proceeds of the convertible note will primarily be used to fund operations, including the development of new high-tech controlled environment indoor farms, during the period prior to the close of this transaction. This note will convert to shares of AppHarvest’s common stock in connection with the close of this transaction.
The Boards of Directors of each of Novus Capital and AppHarvest have unanimously approved the transaction. The transaction will require the approval of the stockholders of both Novus Capital and AppHarvest, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. The transaction is expected to close late in the fourth quarter of 2020 or early in the first quarter of 2021.
Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Novus Capital with the Securities and Exchange Commission and will be available at www.sec.gov.
Advisors
Cowen is serving as sole placement agent and capital markets advisor, and Blank Rome LLP is serving as legal advisor to Novus Capital. Cowen is serving as financial advisor and Cooley LLP is serving as legal advisor to AppHarvest.
Investor Conference Call Information
Novus Capital and AppHarvest will host a joint investor conference call to discuss the proposed transaction Tuesday, September 29, 2020, at 8:30, am ET.
Interested parties may listen to the prepared remarks call via telephone by dialing (877) 425-9470, or for international callers, (201) 389-0878. A telephone replay will be available until October 13, 2020, by dialing (844) 512-2921, or for international callers, (412) 317-6671, and entering the passcode: 13710943.
About AppHarvest
AppHarvest is an applied technology company building some of the world’s largest indoor farms in Appalachia. The Company combines conventional agricultural techniques with cutting-edge technology and is addressing key issues including improving access for all to nutritious food, farming more sustainably, building a home-grown food supply, and increasing investment in Appalachia. The Company’s 60-acre Morehead, KY facility is among the largest indoor farms in the U.S. For more information, visit https://www.appharvest.com/.
About Novus Capital Corporation
Novus Capital raised $100 million in May 2020 and its securities are listed on the Nasdaq under the ticker symbols “NOVS and “NOVSW.” Novus Capital is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. Novus Capital is led by Robert J. Laikin and Larry Paulson, who have significant hands-on experience helping high-tech companies optimize their existing and new growth initiatives by exploiting insights from rich data assets and intellectual property that already exist within most high-tech companies. For more information please visit https://novuscapitalcorporation.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 presentation, regarding Novus Capital’s proposed acquisition of AppHarvest, Novus Capital’s ability to consummate the transaction, the benefits of the transaction, and the combined company’s future financial performance, as well as the combined company’s strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, 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 the respective management of AppHarvest and Novus Capital 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 and Novus Capital. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; the inability of the parties to successfully or timely consummate the proposed transaction, including the risk that any regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transaction or that the approval of the stockholders of Novus Capital or AppHarvest is not obtained; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of the projected financial information with respect to AppHarvest; risks related to the rollout of AppHarvest’s business and the timing of expected business milestones; the effects of competition on AppHarvest’s business; the amount of redemption requests made by Novus Capital’s stockholders; the ability of Novus Capital or AppHarvest to issue equity or equity-linked securities or obtain debt financing in connection with the proposed transaction or in the future, and those factors discussed in Novus Capital’s final prospectus dated May 15, 2020 under the heading “Risk Factors,” and other documents Novus Capital has filed, or 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. There may be additional risks that neither Novus Capital nor AppHarvest presently know, or that Novus Capital nor AppHarvest currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Novus Capital’ and AppHarvest’s expectations, plans, or forecasts of future events and views as of the date of this press release. Novus Capital and AppHarvest anticipate that subsequent events and developments will cause Novus Capital’s and AppHarvest’s assessments to change. However, while Novus Capital and AppHarvest may elect to update these forward-looking statements at some point in the future, Novus Capital and AppHarvest specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Novus Capital’s and 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.
Important Information for Investors and Stockholders
In connection with the proposed transaction, Novus Capital will file a registration statement on Form S-4 (the “Registration Statement”) with the SEC, which will include a preliminary proxy statement to be distributed to holders of Novus Capital’s common stock in connection with Novus Capital’s solicitation of proxies for the vote by Novus Capital’s stockholders with respect to the proposed transaction and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of securities to be issued to AppHarvest’s stockholders in connection with the proposed transaction. After the Registration Statement has been filed and declared effective, Novus Capital will mail a definitive proxy statement, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto, and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Novus Capital, AppHarvest, and the proposed transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Novus Capital through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: Novus Capital Corporation, 8556 Oakmont Lane, Indianapolis, IN 46260. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.
Participants in the Solicitation
Novus Capital and its directors and officers may be deemed participants in the solicitation of proxies of Novus Capital’s shareholders in connection with the proposed business combination. Security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Novus Capital’s executive officers and directors in the solicitation by reading Novus Capital’s final prospectus filed with the SEC on May 15, 2020, the registration statement / proxy statement and other relevant materials filed with the SEC in connection with the business combination when they become available. Information concerning the interests of Novus Capital’s participants in the solicitation, which may, in some cases, be different than those of their stockholders generally, will be set forth in the registration statement / proxy statement relating to the business combination when it becomes available.
Contacts:
Novus Capital Corporation
Investors Relations
Robert Laikin, Chairman
RobertJLaikin@gmail.com
AppHarvest
Investor Relations
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Ocado Boosts Stake In Vertical Farming Specialist Jones Food Co
The online grocery giant bought a 58% stake in Jones Food Co in November 2019 and is understood to have exercised an option in that deal to grow its ownership to approximately 70% of the company
By Alec Mattinson, George Nott
28 August 2020
Ocado Has Upped Its Stake In Vertical Farming Specialist
Jones Food Company To Help
Support The Building of More Farms Next Year
The online grocery giant bought a 58% stake in Jones Food Co in November 2019 and is understood to have exercised an option in that deal to grow its ownership to approximately 70% of the company.
Ocado’s investment will help the indoor produce grower build three more farms in the UK before the end of 2021.
CEO and founder, James Lloyd-Jones told The Grocer: “Their investment is helping us very keenly understand all aspects of the systems we’re building, so we can make sure we’ve got price parity with field and greenhouse-grown, year-round.”
Scunthorpe-based Jones Food Co is Europe’s largest vertical farm operation, with its 5,000 sq m facility stacking up 12 metres high over 17 layers of produce.
Ocado invested in the company as part of a wider £17m bet on vertical farming that also saw it form a joint venture Netherlands-based Priva and US-based 80 Acres called Infinite Acres.
Ocado does not currently list products from its vertical farm operations on its site but hopes to build vertical farms next to or within its CFCs and Ocado Zoom micro fulfillment centres and has mooted plans to open as many as 10 within five years.
The farm’s first crop was harvested in November 2018 and was sold to food-to-go specialist Greencore.
“We want to provide any sort of crop, grown at a value anyone can buy,” Lloyd-Jones said. “I want vertical farming to become boring and not exciting and techy because the minute it’s boring we’ve cracked it.”
Topics: Finance Mergers & acquisitions Ocado Technology
