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Indoor Farming Start-Up BrightFarms Raises $100m In Funding
The start-up has raised over $200 million in funding to date, and BrightFarms claims that it will use these latest funds to invest in its current farms and retail programs and expand its network of regional indoor farms across the US
By Martin White
21 October 2020
Indoor hydroponic farming start-up BrightFarms has secured $100 million in a Series E funding round led by Cox Enterprises, which now owns a majority stake in the company, and a further investment from Catalyst Investors.
BrightFarms builds and operates indoor farms near major metropolitan areas in the US, providing supermarkets and retailers with a consistent supply of locally grown produce. It currently operates indoor farms in Illinois, Ohio, Pennsylvania, and Virginia, with three new farms currently under development in North Carolina, Massachusetts, and Texas.
The start-up has raised over $200 million in funding to date, and BrightFarms claims that it will use these latest funds to invest in its current farms and retail programs and expand its network of regional indoor farms across the US.
BrightFarms claims that its growing methods “use 80% less water, 90% less land and 95% less shipping fuel than traditional agriculture”. The company claims that its indoor growing methods can provide pesticide-free packaged greens to supermarkets in as little as 24 hours after harvest.
The start-up has formed partnerships with major retailers including Ahold Delhaize, Kroger, and Walmart, distributing produce to over 2,000 stores in the US. The firm anticipates that it will expand its distribution to more than 15,000 stores by 2025.
Steve Platt, CEO of BrightFarms, said: “Our goal over the next five years is to make quality, locally-grown greens a staple on grocery shelves and in refrigerators nationwide.
“We are thrilled to have the strong financial backing of Cox Enterprises, an organization that closely aligns with our mission to build a healthier and more sustainable future and to have the additional support of our long-term partners at Catalyst Investors. Together we are ready to scale our model for local indoor farming in every major market in the US”
Korean Smart Farm Company Farm8 Eyes IPO In 2022
The firm has been seeing robust growth despite the coronavirus slump, gaining recognition for its eco-friendly agricultural cultivation and processing technologies. It is the country’s leading smart farm factory, incorporating the latest technologies including artificial intelligence and internet of things to optimize and automate the cultivation process
2020.10.23
Photo provided by Farm8
Farm8, a South Korean agricultural firm with advanced technologies in indoor farming, is seeking to go public on the main Kospi in 2022 after gaining confidence from capital investment.
Farm8’s biggest backer IMM Investment is expected to play a pivotal role in the initial public offering and likely to remain as its No. 1 shareholder to drive the company’s global expansion.
The Seoul-based alternative asset investment firm first linked up with Farm8 in 2014 by investing 16 billion won ($14.1 million) and has since been an ardent supporter of the company, backing its financing, benchmarking and promotion efforts.
In March this year, it helped pulled 10 billion in outside capital, including 5 billion won from state-run Korea Development Bank.
Farm8’s valuation is estimated at 80 billion won after its rights issue.
Farm8 posted 47.2 billion won in revenue last year, up 7.5 percent from 2018. Sales this year are estimated to jump 25 percent to 58 billion won, according to the company.
The firm has been seeing robust growth despite the coronavirus slump, gaining recognition for its eco-friendly agricultural cultivation and processing technologies. It is the country’s leading smart farm factory, incorporating the latest technologies including artificial intelligence and internet of things to optimize and automate the cultivation process.
Farm8 has installed Metro Farms in five subway stations in Seoul and is planning to build a container smart farm in South Korea’s Antarctic research station by the end of this year. It aims to triple its smart farm capacity to 9,910 square meters next year.
The firm also plans to add more value-added crops such as ginseng and strawberries and is exploring options of using these ingredients for cosmetic and medical purposes.
Korea’s smart farm market is estimated to be worth 2.6 trillion won this year, with potential to grow even further amid pledges of government support.
Farm8 is also intent on taking its business global. It said it aims to build its presence in Asian markets including Mongolia, Singapore and Japan, and eventually break into North America and Europe.
By Park Chang-young and Kim Hyo-jin
US - FLORIDA: Orlando Vertical Farming Firm Kalera Eyes Funding Deal To Fuel More Growth
Kalera plans to list up to 31 million shares on the Merkur Market, a trading platform for small and medium companies that’s part of the Oslo Stock Exchange
Staff Writer, Orlando Business Journal
Oct 23, 2020
Like The Produce It Grows, Kalera Inc.’s
Growth Trajectory Is Going Vertical.
The Orlando-based vertical farming company is working with Oslo-based investment firms ABG Sundal Collier and Artic Securities AS to complete a private offering of company stock that would raise Kalera up to $100 million. That money would be used to accelerate the growth of Kalera, which has recently expanded its local workforce and entered new markets.
Corporate growth
Kalera plans to list up to 31 million shares on the Merkur Market, a trading platform for small and medium companies that’s part of the Oslo Stock Exchange. The first day of trading is anticipated to be Oct. 28, the company announced Oct. 21. The deal is a private placement, a sale of shares to pre-selected investors and firms.
Kalera will use the funds to build new vertical farming facilities in both the U.S. and abroad. The firm operates two indoor growing facilities in Orlando, and Kalera expects to grow its corporate workforce in Orlando, CEO Daniel Malechuk told Orlando Business Journal.
To see inside Kalera's HyCube in Orlando, check out the slideshow above.
"Our Orlando [growing] facilities are fully-staffed and hired out,” Malechuk said. “Our corporate office is where we’re going to see a lot of growth.”
Companies may raise capital through a private placement deal in order to fund operations and planned growth, Michael Okaty, an Orlando-based business attorney and partner at Foley & Lardner LLP, told OBJ. Companies using a private placement deal to raise money face less regulatory scrutiny than an initial public offering (IPO), when stocks are offered on an open market, Okaty added.
Aggressive expansion
This is another step in Kalera’s rapid expansion since it was founded in 2010. The company’s vertical agriculture facilities grow quality-controlled produce year-round. Kalera in 2021 will open its newest facility, a roughly 75,000-square-foot building in Denver, and expand the company’s reach to four U.S. markets. The company employs about 75 people, mostly in Central Florida, but will grow its workforce to more than 300 companywide by the end of next year, Malechuk said.
Many of Kalera’s customers, such as restaurants, hotels and Universal Orlando Resort, have seen a drop in business due to the pandemic. Still, Kalera was helped by striking a partnership with Publix Supermarkets Inc. earlier this year. Plus, it’s targeting new customers, such as school systems, Malechuk added.
The global vertical farming industry has big potential, and it’s expected to be worth nearly $12.77 billion by 2026, according to industry analysis site Report Buyer. Plus, the food grown this way is less susceptible to bacteria and disease, and it boasts a longer shelf life, Malechuk previously said.
Kalera anticipates to soon take on more growth in Orlando, across the U.S. and internationally, Malechuk said. “We’ve got a lot more aggressively coming.”
BrightFarms Secures $100 Million Series E Round of Funding
“Our goal over the next five years is to make quality, locally-grown greens a staple on grocery shelves and in refrigerators nationwide,” said Steve Platt, CEO of BrightFarms
Cox Enterprises assumes majority ownership
BrightFarms has secured more than $100 million in debt and new equity capital to support its expansion plans. The Series E round of funding was led by Cox Enterprises, which now owns a majority stake in the company, and includes a follow-on investment from growth equity firm Catalyst Investors. BrightFarms will use the funds to invest in its current farms and retail programs and expand its network of regional indoor farms across the U.S.
BrightFarms has raised more than $200 million in funding to date to build the nation’s first brand of locally grown produce and has established close partnerships with retailers such as Ahold Delhaize, Kroger, and Walmart. BrightFarms currently distributes its products to more than 2,000 stores in the U.S. and expects to expand its distribution to more than 15,000 stores by 2025. The company has indoor farming operations in Illinois, Ohio, Pennsylvania, and Virginia, with three new farms currently under development in North Carolina, Massachusetts, and Texas.
“Our goal over the next five years is to make quality, locally-grown greens a staple on grocery shelves and in refrigerators nationwide,” said Steve Platt, CEO of BrightFarms. “We are thrilled to have the strong financial backing of Cox Enterprises, an organization that closely aligns with our mission to build a healthier and more sustainable future and to have the additional support of our long-term partners at Catalyst Investors. Together we are ready to scale our model for local indoor farming in every major market in the U.S.”
“Cox Cleantech’s goal is to build meaningful businesses that solve fundamental problems facing society and our environment,” said Steve Bradley, vice president of cleantech for Cox Enterprises. “BrightFarms provides this opportunity through its sustainable model of growing food in the same communities where it’s consumed, resulting in food that’s fresher, safer, better tasting, and better for the environment.”
For more information:
www.brightfarms.com
coxenterprises.com/cleantech
www.catalyst.com
21 Oct 2020
Tech-Magnate Jack Ma Visits Dezhou Greenhouse
Jack Ma congratulated China on its achievements in the development of smart agriculture and said: At present, the modern agricultural industry, is similar to the Internet at the beginning of the 21st century, is undergoing tremendous changes, and there is still much room for future development
The Chinese horticultural industry might get ready to rumble as two major business magnates found their way into the greenhouse. Last week Jack Ma (Ma Yun), founder and CEO of Alibaba, and Sun Hongbin, CEO of Sunac, visited the Kaisheng Haofeng Facility. This is the largest greenhouse in the Shandong Province in the Lingcheng District, Dezhou City. They were joined by representatives of the Dezhou Financial Investment Group, Qingdao Haofeng Food Group, and Kaisheng Haofeng (Dezhou) Intelligent Agriculture.
Photograph source: Kaisheng Haofeng (Dezhou) Intelligent Agriculture Co., Ltd.
Technology in the greenhouse
With Alibaba Jack Ma has created one of the biggest technology multinationals in the world, specializing in e-commerce, retail, internet, and technology. Now he took a peek at the "high-quality" scientific and technological content behind a small tomato.
The committee members of the Dezhou Financial Investment Group and vice-CEO Yu Ruihua introduced the modern greenhouse, in what the control over temperature, light, water, carbon dioxide, and fertilizer is integrated via the automatic environmental-control system. The process, including seed selection, seedling raising, planting, pest control, irrigation, picking, packaging, etc., is designed based on the growth requirements of the tomato plants. Besides, standardized management is strictly implemented. The greenhouse uses an automatic screening line with the spectral system, the automatic weighting and screening can be carried out according to the color, weight, and defect degree of tomatoes, ensuring uniform product quality and uniform gram weight.
"The tomatoes planted in this way are not only high in value but also good in taste full of seeds, juice, and rich vitamins", the team explained. After that, the technical operation team reported in detail the variety selection, research, development, plant model construction, digital management, and standardization system of the smart greenhouse.
Second season
The smart greenhouse's second planting season has just finished. The intelligent farm is buzzing with energy and the plants flourish. Jack Ma paid close attention to the growing conditions of the tomato plants, including the coconut coir growth medium, drip irrigation, liquid fertilizer, and other innovative plantation technologies. The bumblebee pollination attracted particular attention. During the period when the tomato plants blossom, the farmers use bumblebees to pollinate the flowers. They do not add hormones, but improve fruit ratio naturally. The tomatoes are juicy and plump, and the flavor is excellent.
Photograph source: Kaisheng Haofeng (Dezhou) Intelligent Agriculture Co., Ltd.
The inspection tour was followed by a conference where the technical operation team provided a detailed report on the development and selection of product varieties in the smart greenhouse, plantation installations, digital management, and standardized systems.
Jack Ma congratulated China on its achievements in the development of smart agriculture and said: At present, the modern agricultural industry, is similar to the Internet at the beginning of the 21st century, is undergoing tremendous changes, and there is still much room for future development. The development of agriculture should pay attention to the input of talents and technology. He hopes to discuss more development possibilities about agriculture with everyone and jointly promote the progress of farmers, industries, and the whole society.
19 Oct 2020
Kalera Contemplates Private Placement
Kalera has engaged ABG Sundal Collier ASA and Arctic Securities AS to advise on and effect a contemplated private placement of up to 31,000,000 new shares in the company to raise gross proceeds of up to NOK 930 million (equivalent to approx. USD 100 million)
Kalera has engaged ABG Sundal Collier ASA and Arctic Securities AS to advise on and effect a contemplated private placement of up to 31,000,000 new shares in the company to raise gross proceeds of up to NOK 930 million (equivalent to approx. USD 100 million).
The completion of the Private Placement would bring the company’s total equity funding in 2020 to around USD 160 million and would be used to maintain and fuel its rapid US and international expansion. Specifically, Kalera intends to use the net proceeds from the private placement to finance the construction of new facilities, in both the US and internationally, as part of the company's rollout plan for 2021, as well as for general corporate purposes.
"In a short time, we have proven that our model allows us to provide produce at industry-leading yields and unit economics that enables rapid facility expansion and provides our end-user customers the opportunity to purchase our premium quality greens at stable, conventional pricing,” said Daniel Malechuk, CEO of Kalera. “This private placement will allow Kalera to take the next step in its rapid US domestic and international expansion and become a true global leader in vertical farming of fresh, clean and nutritious leafy greens in close proximity to urban centers.”
For more information:
Kalera
info@kalera.com
www.kalera.com
22 Oct 2020
More Than $30 Million of Additional AgTech Deals in Abu Dhabi’s Pipeline
The Abu Dhabi Investment Office (ADIO) announced today upcoming developments in Abu Dhabi’s agriculture sector as part of continued plans to bolster local AgTech capabilities and innovations in desert agriculture
September 24th, 2020
The Abu Dhabi Investment Office
The Abu Dhabi Investment Office (ADIO) announced today upcoming developments in Abu Dhabi’s agriculture sector as part of continued plans to bolster local AgTech capabilities and innovations in desert agriculture. In the coming months, more than AED 110 million (USD 30 million) in financial incentives are to be offered to AgTech companies looking to establish or fast track their growth in Abu Dhabi.
The update was given at ADIO’s first sector-focused webinar, “Inside Abu Dhabi: Innovation in Agriculture”, which took place on 23 September and highlighted opportunities in the emirate’s AgTech space. The webinar was attended by participants from all across the world, including the United States, the United Kingdom, Israel, and India.
The new pipeline is part of ADIO’s incentive programme, established under the Abu Dhabi Government’s Ghadan 21 accelerator programme. The incentive packages include competitive financial incentives and other non-financial benefits for companies that develop and commercialise new arid and desert agriculture solutions based on pre-determined criteria.
The new deals will build on the milestones achieved by the four AgTech pioneers – AeroFarms, Madar Farms, Responsive Drop Irrigation (RDI), and RNZ – ADIO partnered with earlier this year to establish R&D and production facilities in the emirate.
H.E. Dr. Tariq Bin Hendi, Director General of ADIO, said: “We have made significant headway towards realising our mission of turning sand into farmland, prioritising innovation that has the potential to make real, lasting change in the region and beyond. Despite the current global conditions, 2020 will be a transformational year for AgTech in Abu Dhabi as we close in on deals to bring more pioneering companies to the UAE. We will continue to work closely with ecosystem players like the Ministry of Food Security, the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), and ADQ to support AgTech founders and startups with the resources and infrastructure they require to achieve long-term success in the emirate.”
ADIO announced in April that it made AED 367 million (USD 100 million) in financial incentives available to four AgTech pioneers, partnering individually with AeroFarms, Madar Farms, RDI, and RNZ to establish new R&D and production facilities in Abu Dhabi. During the first “Inside Abu Dhabi” webinar, each company announced significant milestones in their respective projects over the past five months.
USA-headquartered vertical farming company AeroFarms has set up its corporate office at Abu Dhabi Global Market (ADGM) to plug into the emirate’s innovation ecosystem and support R&D plans aimed at tackling agriculture problems within desert and arid climates. The company has also built out a local team, including hiring a general manager to lead AeroFarms’ Abu Dhabi strategy.
David Rosenberg, Co-Founder, and CEO of AeroFarms, commented: “Our excitement grows as we advance in Abu Dhabi the building of the world’s largest R&D indoor vertical farm in the world. We have set up corporate offices and started to build out an incredible team including our General Manager. We are working to finalise partnerships to co-innovate together in our Abu Dhabi facility as we work to solve some of the most pressing problems in agriculture in the region and the world. We are honoured to be working closely with ADIO to make Abu Dhabi a nexus for AgTech innovation and we encourage companies and universities to reach out and partner with us as we work on the next generation of agriculture breakthroughs.”
Madar Farms, a home-grown UAE AgTech innovator, has made significant progress in developing the local food offering in the market. The company has launched new products and is reaching consumers through expanded distributors and platforms. It is also partnering with a UAE education institution to teach students about AgTech and hydroponic systems, educating them about sustainable indoor agriculture from an early age.
Abdulaziz AlMulla, CEO and Co-Founder of Madar Farms, said: “We are happy to be part of the conversation. At Madar Farms, we are already leading a new agriculture revolution by growing a wide range of high-quality fresh produce every day here in the UAE with the use of advanced farming technologies. We want to create a lasting change by providing a holistic approach to sustainability and every day we are working towards achieving our vision and establishing Abu Dhabi as a global AgTech leader.”
RDI, which has developed an innovative irrigation system to transform water usage in UAE agriculture, has secured a facility in Abu Dhabi’s integrated trade, logistics, and industrial hub, KIZAD, to be used for industrial research, product manufacturing, and distribution. Given the emirate’s strategic location at the intersection of the Middle East, Europe, Sub-Saharan Africa, and Asia regions, the new distribution hub will allow RDI to reach more water-stressed countries that can benefit from its irrigation solution. The company is also set to install pilot projects using green technologies in Abu Dhabi over the coming months, paving the way for the development of the best AgTech practices in desert environments.
Jan Gould, Co-Founder, and CEO of RDI, commented: “The foresight and vision of Abu Dhabi’s ruler and its government leaders to focus and support innovations in agriculture has defined the UAE capital as a leader in ensuring food security for its citizens, developing local food supply chains, addressing challenges and preserving the planet’s precious resources for the future. Responsive Drip Irrigation is committed to working with ADIO and our partners in the AgTech programme to build a greener tomorrow for generations to come. With Abu Dhabi’s leadership and support, there is hope for recovery if we all work together. We just need to plant the seed.”
RNZ, which produces customised solutions for farming communities, has broken ground on a plot in KIZAD and laid the foundations for its new R&D centre, expected to be operational towards the end of the first half of 2021. The team is steadily being assembled with both a Head of Research and Head of Production appointed. The centre will look into developing effective agri-inputs to yield higher productivity, with an early focus being the development of 100% organic and residue-free solutions to support the region’s date palm farmers.
Raza Soomar, CEO of RNZ, said: “As our new R&D centre in Abu Dhabi begins to take shape, we are just months away from looking into solving problems for farmers and bringing effective solutions to the market that are relevant in Africa, Asia, and the Gulf. We are proud to be part of Abu Dhabi’s AgTech ecosystem and excited about the possibilities for RNZ’s new R&D hub.”
ADIO will announce further details of its upcoming AgTech deals in the coming months.
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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.”
Harvest London Invests In State-of-The-Art Vertical Farm
Harvest London has invested in its second vertical farm in the capital, transforming an empty industrial unit in Leyton into a state-of-the-art indoor farm
30th September 2020
New facility in Leyton is vertical producer’s second site in north London and the latest construction project by booming tech firm CambridgeHOK
Basil will be the farm's first crop
Harvest London has invested in its second vertical farm in the capital, transforming an empty industrial unit in Leyton into a state-of-the-art indoor farm.
The site in north London, which boasts 152 m2 of growing area, will produce herbs and certain vegetables hydroponically for local restaurants 12 months of the year.
The business currently operates from a smaller vertical farm in Walthamstow, growing leafy greens, herbs, flowering plants, and root vegetables for London restaurants.
The main benefits for chefs, according to Harvest London, will be the quality, locality, and freshness of its produce.
Matt Chlebek, chief agronomist at Harvest London, said: “This is a really exciting development for us and a huge step up from our initial facility, which we established on the back of our own research and development two years ago in Walthamstow.
“We started the business having spoken to local chefs about providing freshly grown herbs just a few miles from their kitchens, thereby reducing the distance and time from production to consumption. This was something they were excited about.
“We have worked with a number of restaurants in London over the past two years who have become excellent customers and as a result of that success we wanted to improve further and become more sophisticated in what we are doing.”
He added: “We can certainly look to increase the number of restaurants we supply now, and ask chefs what herbs they want us to grow, and when.
“The plan is to demonstrate the increasing demand at this facility and secure further investment to create more, larger vertical farms across London in the coming years.”
The new farm’s ‘grow room’, which uses energy-saving LED lighting, is controlled by automated climate and irrigation systems to aid production and maximize growth.
Harvest London will be able to control the climate remotely via their mobile phones and analyze data on yield and growing capacity.
As well as the grow room, CambridgeHOK constructed a harvesting room and production management area, where crops will be processed and made ready for collection and delivery.
First, produce off the racks at the north London farm will be basil, of which the unit can produce around seven tonnes a year. The first crop is now almost ready to be harvested just four weeks after being planted.
This is the latest project to be completed by East Yorkshire-based horticultural engineering firm CambridgeHOK, which is currently also working on a multi-million-pound strawberry glasshouse for Beeswax Dyson in Lincolnshire as well as around 30 other projects.
The tech firm is on course for its best-ever financial year amid booming investments in glasshouse and vertical production in the UK.
Chlebek and Harvest London’s chief executive Chris Davies praised CambridgeHOK for their specialist knowledge and handling of their farm’s construction.
“As a client, it is reassuring to know you are working with a company that handles every aspect of planning, design, and building a vertical farm,” said Chlebek.
“You simply wouldn’t get the same knowledge and understanding by using a number of different companies for each element of the project, as we had to do when establishing our first facility.
“The great advantage CambridgeHOK brings is that they are experienced growers. They have explained why the specific approach was being taken with regards to each element of creating the ideal environment.”
Kalera Engages Financial Advisors
Kalera has engaged Bank of America Merrill Lynch International and Nordic banks ABG Sundal Collier and Arctic Securities as financial advisors to assist the Company with matters related to its financial strategy and in approaching equity capital markets, as Kalera’s expansion accelerates
Kalera Engages Financial Advisors
Kalera AS announced its engagement of financial advisors. Kalera has engaged Bank of America Merrill Lynch International and Nordic banks ABG Sundal Collier and Arctic Securities as financial advisors to assist the Company with matters related to its financial strategy and in approaching equity capital markets, as Kalera’s expansion accelerates.
"We are very pleased to have engaged these banks and are convinced that their combined impressive industry knowledge and investor outreach capabilities will enable us to continue attracting high-quality investors for further raising of equity capital," says chairman of the board Bjørge Gretland.
Kalera intends to accelerate its growth and has previously announced that it is planning for an IPO in Oslo and/or on Nasdaq in due course.
Kalera is rapidly executing on a US domestic and international expansion plan to grow fresh, clean, and nutritious leafy greens in close proximity to urban centers. Kalera currently operates two growing facilities in Orlando, and is constructing facilities in Atlanta and Houston which will open in 2021. As Kalera accelerates its growth over the next few years, it will continue to open additional facilities, expanding production capacity throughout the US and internationally.
For more information:
Kalera
info@kalera.com
www.kalera.com
Publication date: Fri 2 Oct 2020
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
John Mills and Melissa Calandruccio, CFA
AppHarvestIR@icrinc.com
Media Relations
Cory Ziskind and Keil Decker
AppHarvestPR@icrinc.com
Largest Indoor Farm In The World To Be Developed In Abu Dhabi
The GreenFactory Emirates will produce 10,000 tons of fresh produce per year on a cultivation area of 160,000 square meters. It combines vertical and flat farming and solves the normal cultivation restrictions due to extreme climates in regions as the UAE
A Joint Venture Between GrowGroup IFS And RainMKRS Capital
Investment Announced The Construction of A 17,5 ha
Indoor Farm In The Desert of Abu Dhabi
2 October 2020
The GreenFactory Emirates will be the biggest indoor farm in the world. The farm uses 95 percent less water compared to conventional outdoor farming.
Vertical and flat farming
The GreenFactory Emirates will produce 10,000 tons of fresh produce per year on a cultivation area of 160,000 square meters. It combines vertical and flat farming and solves the normal cultivation restrictions due to extreme climates in regions as the UAE.
The total project amounting to 150 million euros is planned in different phases for the next 3 years.
Initiators CEO John Breedveld of GrowGroup and chairman Mohamed Jouan Salem Al Dhaheri of rainMKRS.
Extreme low water use
Compared to standard farming methods, the farm uses very little water. According to GrowGroup director John Breedveld the water use will be even lower than for conventional greenhouse cultivations.
‘The water scarcity made us decide to reuse the condensate water. In countries where water is less scarce, this is often considered to be too expensive. We expect to realize a water use of only 2 liter per kilogram produced food.'
The extremely low water use also helps the farm to achieve a low carbon footprint. Breedveld: ‘As we use so little water, we can get it from an inland freshwater source. Therefore we don't need to use freshwater that is produced by desalination of seawater. This is a very common water source in Abu Dhabi but it has a higher carbon footprint.’
‘It helps us to reduce the farmer’s CO2 footprint up to 40 percent compared to conventional outdoor production’, added Breedveld.
Mariam Hareb Almheiri, UAE Minister of State for Food Security.
Food security
Food security is high on the UAE’s agenda. The country aims to be number 1 on the Global Food Security Index by 2051.
Commenting on the announcement, Mariam Hareb Almheiri, Minister of State for Food Security said: ‘The UAE is applying concerted efforts to improve its domestic production of food, with agricultural technology having a hugely important role to play.‘
‘In fact, key targets of the government’s National Food Security strategy are to generate a 30 percent yield improvement from technology-enabled production. Indoor farms such as GreenFactory Emirates are instrumental in helping us reach these goals’, stated minister Hareb Almheiri.
Research and development
GreenFactory Emirates will include a built-in research and development component that will help ramp up the production beyond the 56 current varieties of lettuces, leafy greens, herbs, and kale. It will also optimize its production by collecting real-time data to inform future global expansion of indoor farming.
With confirmed partnerships with GAAS Wageningen and Delphy in The Netherlands, GreenFactory will benefit from live feedback provided by some of the best students and academia in the field.
Partnership
The partnership between GrowGroup and rainMKRS is a result of an introduction made by the Embassy of the Kingdom of The Netherlands in the United Arab Emirates and the Monarch Group which has played an instrumental role in seeking opportunities and nurturing relationships.
The joint venture announced the construction of more indoor farms in other regions of the world where extreme climates are a challenge to normal cultivation.
This news item is based on content originally published on the websites of Grow Group IFS, Rainmkrs Capital, and Emirates News Agency.
Lead photo: Impression of the 26 football field large indoor farm that will be built in Abu Dhabi.
Crops Can Now 'Tell' Growers When They Are Stressed
All plants use internal electrical, mechanical, and chemical signaling networks to coordinate growth, reproduction, and defense – and Vivent is the first company in the world to launch a commercial crop health diagnostic system based on plant electrophysiology
Vivent, the Swiss biosignals analysis specialist, has closed a multi-million Euro Series A funding round. This first external investment from Astanor Ventures, will be used to expand sales of a unique plant electrophysiology system that diagnoses crop stress in real-time.
All plants use internal electrical, mechanical, and chemical signaling networks to coordinate growth, reproduction, and defense – and Vivent is the first company in the world to launch a commercial crop health diagnostic system based on plant electrophysiology.
Electrical signals are some of the fastest to transmit information throughout a plant – from roots to shoots. Vivent’s crop diagnostics system, called ‘PhytlSigns’, uses AI to interpret signals linked to plant stress and diagnoses pathogens and pests prior to the appearance of any visible symptoms. Early diagnosis increases yields, improves crop protection effectiveness, and encourages the adoption of environmentally preferable protection solutions.
“Growers are using PhytlSigns to monitor their crops in real-time. This additional information is improving their decision-making on climate control, irrigation, and crop protection,” explains Carrol Plummer, founder, and CEO.
“Thanks to low-cost powerful machine learning, we can give growers real-time information that results in safer, higher-quality, and tastier food with less reliance on preventive spraying and more focus on environmentally preferable crop protection. We are very excited to be working with Astanor, a top deep-tech venture fund, with ambitions to enhance food quality, security, and sustainability.”
Christina Ulardic, Partner at Astanor Ventures and new Vivent board member, explains that “Vivent is pioneering a new relationship with the crops we grow. It is remarkable to be able to see precisely how plants are responding to stressors in the environment and to learn how we can use these signals to provide treatments which improve plant husbandry.”
Vivent is already working with top global crop protection companies and growers in several countries to improve yields and product quality. Customers value early diagnosis of plant diseases, particularly those in roots, which are hard to identify using other methods.
For more information:
Vivent
www.phytlsigns.com
Publication date: Mon 28 Sep 2020
CEA Startup AppHarvest To Go Public, Expects $475m Funding At $1bn Valuation
“We are about to plant our first crop in a 60-acre, controlled environment, chemical-free farm. No one else in America is doing something at that scale. Investors look at that,” Peter Spac, AppHarvest’s newly appointed chief financial officer, told AFN.
October 1, 2020
US controlled environment agriculture (CEA) startup AppHarvest has announced a merger with NASDAQ-listed special purpose acquisition company (SPAC) Novus Capital, enabling it to go public.
The deal is slated to bring in $475 million in gross proceeds for Kentucky-based AppHarvest, including a private investment in public equity (PIPE) transaction worth $375 million from existing and new investors including Fidelity Management & Research Company, Inclusive Capital, and Novus. This commitment, at $10 per share, values the company at $1 billion.
“I can’t say this was the exact plan but what accelerated all of this was Covid-19,” AppHarvest CEO Jonathan Webb told AFN. “Typically, you would do 40 to 60 meetings to get a couple of investors. We had 22 meetings and had almost 20 ‘yeses.’ Very few passed on this deal and we eventually had to cancel meetings.”
Webb describes the SPAC transaction and PIPE financing experience as “absolutely phenomenal.”
A SPAC is formed with the sole purpose of raising capital through an IPO in order to acquire an existing privately-held company and take it public. Also referred to as ‘blank check companies,’ the mechanism has existed for several years but has received increased attention of late. This year alone, more than 50 SPACs have been formed in the US, collectively raising around $36.2 billion as of last month.
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PIPE deals effectively allow institutional investors to buy larger quantities of public company stock, typically at a discount to public market prices.
“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,” Novus chairman Bob Laikin said in a statement.
“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,” he continued.
AppHarvest — which raised $28 million in its Series C round in August — is launching what it describes as the world’s largest greenhouse later this year, consisting of a 2.76 million square foot facility in Morehead, Kentucky. The system it uses reportedly reduces water usage by 90% compared to traditional open-field agriculture, while also eliminating runoff.
Its first crop will be non-GMO tomatoes, which will be provided to a number of US grocers.
Other AppHarvest investors include TV cook Martha Stewart, VC veteran Peter Thiel, ValueAct Capital’s Spring Fund, Revolution’s Rise of the Rest Seed Fund, Equilibrium Capital, and Narya – the new VC firm co-founded by JD Vance, author of best-selling Appalachian memoir Hillbilly Elegy.
“We are about to plant our first crop in a 60-acre, controlled environment, chemical-free farm. No one else in America is doing something at that scale. Investors look at that,” Peter Spac, AppHarvest’s newly appointed chief financial officer, told AFN.
“We have a phenomenal growing team. We have a phenomenal team of sustainability experts. They’re looking at a company and even though its pre-revenue it has all the necessary ingredients to succeed.”
AppHarvest knows it’s far from being the only player in the CEA game. But it’s confident in its approach.
“We aren’t burning through cash with pointless R&D when we can buy incredible technologies over in the Netherlands,” Webb says.
“The other thing is scale. Part of it is that building big stuff fast in the US is very hard. You have to get permitting, communities’ [buy-in], state and federal support, infrastructure, inspections. What we’ve proven through a global pandemic is that we can build one of the largest facilities in the world on time, on budget, at a record pace.”
Moving forward, AppHarvest is focused on bringing its beefsteak and on-the-vine tomatoes to market. The first harvest at its Morehead facility is slated for early 2021. It hopes to expand into leafy greens, berries, cucumbers, and bell peppers in the future.
May Indoor Science Cafe - Tuesday, May 26th, 11:00 AM EDT - How to Fund Your Indoor Farm
Indoor Ag Science Cafe is an open discussion forum, organized by Chieri Kubota (OSU), Erik Runkle (MSU), and Cary Mitchell (Purdue U.) supported by USDA SCRI grants
May Indoor Science Cafe
Please sign up!
Tuesday, May 26th, 11:00 AM EDT
How to Fund Your Indoor Farm
Presented by
Nicola Kerslake
(Contain Inc.)
Please sign up so that you will receive Zoom link info.
Indoor Ag Science Cafe is an open discussion forum, organized by Chieri Kubota (OSU), Erik Runkle (MSU), and Cary Mitchell (Purdue U.) supported by USDA SCRI grants.
Sign up for May 26th Cafe
Abu Dhabi Investment Office Announces Funding For LED Vertical Farm R&D
AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation will receive AgTech-centric funding to further develop vertical farming techniques that can help feed the UAE region
AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation will receive AgTech-centric funding to further develop vertical farming techniques that can help feed the UAE region.
Investment in LED-supported vertical farming begins to bloom in the UAE. (Photo credit: Image by Nattanan Kanchanaprat via Pixabay; used under a free license for commercial or noncommercial purposes.)
Apil 23, 2020
The Abu Dhabi Investment Office (ADIO) has announced $100 million in funding for what it calls “AgTech [agricultural technology] Pioneers,” each of which will build new research and/or growing facilities. The four recipients of the funding are AeroFarms, Madar Farms, RNZ, and Responsive Drip Irrigation (RDI), each of which will build new facilities in the Abu Dhabi emirate. The effort will leverage LED-based horticultural lighting and other technologies in an attempt to solve food supply issues in the UAE region and indeed around the globe.
AeroFarms, based in Newark, NJ, is a vertical farming specialist that we first encountered back in 2016. The company uses what it calls aeroponic technology to spray a mist of water and nutrients on the roots of plants. The company has been the beneficiary of other investment capital including $100 million from retailer Ikea’s investment fund.
In Abu Dhabi, AeroFarms will build a 90,000-ft2 facility that the company said will be the largest of its kind in the world. The company didn’t completely explain that statement, but we have noted of late that vertical farms come in different configurations. AeroFarms utilizes racks or shelves of plants stacked high, each with LED lighting directly over the cultivars. Others such as Plenty rely on plants grown in a vertical series of holes in a plastic pipe of sorts where water and nutrients flow top to bottom. Such a configuration has also been adopted by Freight Farms in shipping-container-based installations.
The UAE AeroFarms facility will grow commercial crops and serve in research. The company will focus on:
Advanced organoleptic research and precision phenotyping laboratory
Advanced seed breeding center
Phytochemical analysis laboratory
Machine vision and machine learning laboratory
Robotics, automation, and drones laboratory
“Our mission is to grow the best plants possible for the betterment of humanity, and this new cutting-edge R&D facility leverages our agriculture expertise and science-driven roots,” said David Rosenberg, co-founder, and CEO of AeroFarms. “We will be conducting leading research in plant science, vertical farming, and automation, accelerating innovation cycles and commercializing a diverse range of products. We will be partnering with major international companies, local universities, and AgTech startups to help solve some of the most pressing agriculture needs of our time, and AeroFarms is proud to play a pivotal role to help establish the Emirate of Abu Dhabi as a global hub for AgTech innovation.”
Tomatoes and microgreens
Moving to Madar Farms, months ago the company revealed plans to build an indoor LED-lit farm for tomatoes and microgreens in the Abu Dhabi industrial area near the port called Kizad. The grower will presumably turn to vertical farming techniques with tomatoes — an unusual choice. But we learned at our HortiCann Light + Tech Conference last year that cannabis yields have been shown to increase with shorter, more compact plants. Biomass has typically been the goal for both cultivars, which have traditionally been grown very tall — meaning they were not amenable to stacking in layers as they would in a vertical farm arrangement. However, the evaluated vertical farming techniques applied to those high-yield cannabis grow operations might produce similar results for tomato plants.
The remaining two firms will work more in an R&D capacity. RDI is perfecting a water delivery system designed to minimize water usage in sandy soils and on non-arable land. Meanwhile, RNZ, which is based in the region, will build a new R&D center hoping to increase yield.
Our HortiCann Light + Tech Conference is slated for Oct. 20, 2020, in San Jose, CA. Bruce Bugbee of Utah State University will deliver the keynote.
For up-to-the-minute LED and SSL updates, why not follow us on Twitter? You’ll find curated content and commentary, as well as information on industry events, webcasts, and surveys on our LinkedIn Company Page and our Facebook page.
Vertical Farming Sector Struggles With Costs
The global market for vertically farmed produce is forecasted to grow from $ 781 million in 2020 to $ 1.5 billion by 2030, representing a CAGR of 6.85%, according to a new report from market intelligence firm IDTechEx, ”Vertical Farming: 2020-2030.”
22 April 2020
While the vertical farming sector has raised over $ 1 billion in funding since 2015, the sector faces huge challenges.
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The global market for vertically farmed produce is forecasted to grow from $ 781 million in 2020 to $ 1.5 billion by 2030, representing a CAGR of 6.85%, according to a new report from market intelligence firm IDTechEx, ”Vertical Farming: 2020-2030.”
$ 1 billion in funding since 2015
According to IDTechEx, investors are responding enthusiastically, with the sector raising over $ 1 billion in funding since 2015. High profile investments include New Jersey-based start-up AeroFarms raising $ 100 million in 2019 to expand its aeroponic growing facilities, and Californian start-up Plenty raising $ 200 million in 2017 in a funding round led by SoftBank Vision Fund, along with backers including Jeff Bezos and Alphabet chairman Eric Schmidt.
In Asia, the industry is already well-established – in Japan, there are over 200 vertical farms currently operating, with industry leader Spread Co. Ltd. producing 30,000 heads of lettuce every day in its highly automated Techno Farm Keihanna plant. However, the Japanese market growth is likely to be slow, with growth in North America and China driving the industry.
Vertical farming sector littered with bankruptcies
However, despite this optimistic picture, the industry is facing challenges. The sector is littered with bankruptcies as companies struggle with the power costs of maintaining a controlled environment 24/7 and the difficulties of coordinating the labour-intensive process of running a vertical farm. Nevertheless, companies remain optimistic, with advances in lighting and automation technology helping to shape the future of indoor growing, states the report.
Power and labour costs
One of the main challenges for the vertical farming industry is, according to IDTechEx, the power and labour costs. Vertical farming companies face a difficult decision between the extremely high start-up costs of a highly automated facility to reduce labour costs and improve efficiency, versus a cheaper facility with less automation and higher labour costs.
The report states that very few vertical farming companies currently operate profitably. If investor enthusiasm dies down, companies that are not operating efficiently could suffer.
Vertical farming uses carefully controlled growth conditions to give yields far higher than normal agriculture. However, labour and electricity costs form challenges.
Another disadvantage of vertical farming is the fact that it is currently mostly limited to leafy greens and herbs – high-value crops that are easy to grow and where most of the mass of the crop can be eaten. “Whilst this is a valuable market in itself, it is unlikely to revolutionise global food production,” say the researchers.
Issues with sustainability
Vertical farming uses a lot of electricity. According to the report, this not only makes vertical farming expensive but also presents issues with sustainability, with the energy used in the process far outweighing the benefits of reduced transport through local production.
Of course, there are also advantages. For instance, vertical farming can grow more crops with less land and less water than conventional agriculture, with no pesticides, year-round. By tailoring growing conditions to the exact needs of the plant, vertical farming could give much higher quality crops.
Disrupt notoriously complex supermarket supply chain
And, according to IDTechEx, by producing crops efficiently near urban population centres, vertical farming could disrupt the notoriously complex supermarket supply chain. Currently, fresh produce travels hundreds to thousands of miles to reach consumers, losing freshness along the way, and increasing the risks of contamination. Vertical farming could provide much fresher produce with less risk.
Also read: What is the cost of vertical farming?
Madar Farms Receives Investment As Part of Abu Dhabi Investment Office's Drive To Accelerate The Growth of The Emirate's Ag-Tech Industry
The investment is part of ADIO’s AED 1 billion AgTech Incentive Programme to accelerate the growth of the emirate’s burgeoning AgTech ecosystem and promote innovation in desert agriculture that is locally relevant and globally exportable
Abu Dhabi, Monday 13 April 2020
UAE-based AgTech company, Madar Farms has partnered with the Abu Dhabi Investment Office (ADIO) to support the operation of the world’s first commercial-scale indoor tomato farm using only LED lights and a new research facility to help in accelerating the AgTech industry in the UAE and the region.
The investment is part of ADIO’s AED 1 billion AgTech Incentive Programme to accelerate the growth of the emirate’s burgeoning AgTech ecosystem and promote innovation in desert agriculture that is locally relevant and globally exportable.
It will be used towards developing the world’s first commercial-scale indoor tomato farm that will use only LED lighting to grow. The facility is currently under construction at Khalifa Industrial Zone Abu Dhabi (KIZAD) and set to open by the end of this year.
The facility will also see Madar Farms triple the quantity of its microgreens and grow a wider variety of products, increasing its operations in developing local food for local consumption.
The investment will also support a new Research and Development (R&D) facility that will enable Madar Farms to quantify production output measured against environmental inputs (water and electricity). Currently, Madar Farms has an established R&D facility at Masdar City in Abu Dhabi.
Madar Farms is one of four AgTech innovators to receive investment from ADIO in the latest award of financial packages from its AgTech Incentive Programme, established under the Abu Dhabi Government’s Ghadan 21 accelerator program. ADIO will invest AED 367 million (USD 100 million) in total in four AgTech companies building facilities in Abu Dhabi as part of this round.
Since launching in 2017, Madar Farms has been leading a new agriculture revolution by using advanced methods to grow local high-quality fresh produce with cutting-edge farming technologies on its hydroponic-vertical systems.
As well as providing a holistic approach to sustainability, Madar Farms also works with the wider industry and education authorities to support the UAE government’s National Food Security Strategy 2051 that aims to solve the region’s food problems and provide enough nutritious food all-year-round.
Abdulaziz AlMulla, CEO and co-founder of Madar Farms, said: “It is a privilege to be recognized by ADIO for our efforts in tackling food and water security challenges in the UAE and the region and turning the Late Sheikh Zayed vision into reality. This shows that we are going in the right direction and with food sustainability becoming more important, we are more determined to build on this achievement.
“This investment will enable us to significantly scale up our operations in the UAE as well as put the skills and knowledge we have gained over the last three years into researching long-term, sustainable solutions for complex food security challenges in the region.
“As well as strengthening our position as a key player in the UAE’s AgTech industry, our ambition is to be leading a new agricultural revolution in different countries in the GCC region and this investment is a step forward to helping us achieve this.”
H.E. Dr. Tariq Bin Hendi, Director General of ADIO, said: “We are proud to partner with Madar Farms to support the continued commercialization of its innovative AgTech solutions in Abu Dhabi. The investment will enable Madar Farms to scale up its capabilities and contribute to expanding the supply of sustainable, quality local food in the region. AgTech is a priority sector for the Abu Dhabi Government, and Madar Farms will be a key player in the growth of the ecosystem over the coming years.”
About Madar Farms
Madar Farms is a local company providing a holistic approach to sustainability to help tackle food and water security challenges in the region.
With offices in Dubai and a research and development center in Abu Dhabi, Madar Farms offers products and services that help drive responsible sourcing, environmental ownership, and social impact. This purpose-driven offering is underpinned by the application of innovative AgTech.
Madar Farms also operates the Sustainable Futures program, a hands-on, localized, easy-to-integrate sustainability curriculum that uses food to explore a wide range of topics across the sustainability agenda. This school program is designed to empower the next generation with the awareness, knowledge, skills, and behaviors to create a sustainable future for us all.
Keep up to date with the latest news and events from Madar Farms on LinkedIn, Instagram and Facebook
Abu Dhabi Invests $100 Million In A Plant-Based Indoor Farm
UAE capital Abu Dhabi has put $100 million into agtech companies looking to revolutionize the future of food with techniques like indoor vertical farming
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Due to a lack of arable land, high temperatures, and increasing water scarcity, the government of Abu Dhabi—the capital and second-most populous city in the United Arab Emirates (UAE)—is investing $100 million in indoor farming.
The Abu Dhabi Investment Office is backing four agtech companies.
Vertical farming startup Madar Farms will construct a tomato farm. New Jersey-based company Aerofarms will build an R&D center. Florida’s Responsive Drip Irrigation (RDI) is developing a new irrigation system for growing plants in sandy soil. Abu Dhabi-based startup RNZ is creating more potent fertilizers, reducing the need for resources in farming.
The investment is part of a larger $272 million program supporting the development of agtech projects, such as indoor farming. The government believes that vertical farming will help the UAE—which imports 80 percent of its food—become more self-sufficient.
Vertical farming can provide food in areas with few resources. | Oasis Biotech
The Future Of Farming?
“Agtech will be part of the solution to how we can better utilize water, how we can be more efficient, and how we can drive yield in farms,” Tariq Bin Hendi, the director-general of the Abu Dhabi Investment Office, told Fast Company. “We’re embracing technology because we know it’s the future.”
Abdulaziz Al Mulla, CEO of Madar Farms, explained that traditional farming “draws far too much on our precious water reserves. At the rate we’re going, we might run out of water within the next 50 years.”
A team of more than 60 scientists will study plant science at Aerofarms’ RDI center. According to CEO David Rosenberg, the company will work to develop plants with better yield, flavor, and nutrition.
“We want to grow more plants, know how to grow better, know how to grow with lower capital cost and operating costs,” said Rosenberg “That all stems from an ability to understand plants.”
Hydroponic farms use significantly less land and water than traditional farming techniques. Madar Farms’ system can recycle up to 95 percent of the water it uses. Growing Underground—a company growing greens in an old World War II bunker beneath London—uses 75 percent less water than traditional farming.
Elsewhere in the UAE, Crop One is building a 130,000 square foot facility in Dubai. It will use 320 gallons of water and 100 square feet of land in its hydroponic farm to grow the same amount of leafy greens that 827,640 square feet of land and 250,000 gallons of water would produce on a traditional farm.
COVID-19 Roundtable: Indoor Ag Perspectives On Coronavirus
One of indoor ag’s greatest strengths is its diversity. Under one roof — hopefully, with a rooftop garden — it unites agriculture, tech, business, tradition, and innovation in a way few other industries can match
One of indoor ag’s greatest strengths is its diversity. Under one roof — hopefully, with a rooftop garden — it unites agriculture, tech, business, tradition, and innovation in a way few other industries can match. This diversity means that when it comes to confronting something like coronavirus, people may experience the crisis in different ways. And it means a world of different people bringing their unique experiences to the monumental task of keeping people fed while the rest of the world is shut down.
With that in mind, we reached out to our friends across the industry for a (socially-distanced, email) roundtable on what they’re seeing now, and what it means for the industry.
Supply and Demand Are Changing
As shelter in place orders go out across the country, shuttering bars and restaurants, Americans are returning to eating at home, and that’s changing how they buy.
“Supply chains are disrupted and most indicators say that it will take three to four weeks to adjust to the current coronavirus situation. There is a big shift away from restaurants and toward retail food purchases and direct to consumer options. Direct-to-consumer quickly went from something grocery stores and restaurants wanted to figure out to an urgent need given the number of people that cannot or do not want to venture out of their house.
“Local produce and products from vertical farms can fit nicely into this new model. They provide local and fresh options that can fill in current supply chain gaps. Consumers tend to increase purchases of local, organic, and natural products when there is a human health or food safety concern. This spike will likely happen here. The only factor pulling it down is that these products tend to be more expensive and many people are very worried about their jobs. Over 3 million people filed for unemployment this week and that number is expected to rise dramatically in the coming weeks.” — Michelle Klieger, Strategerm Consulting
Automation Is Imperative
Whether you harvest insects, like Ÿnsect, or make agtech solutions, like Autogrow, it’s clear that this moment underscores what we’ve known for a long time: automation is one of the keys to the next generation of indoor ag.
“We have a robotized manufacturing process, where we require very, very few workers. They are wearing a full suit, so they are secure, and have a mask, like a diver. The risks of contamination are very low.” — Alain Revah, Ÿnsect
“We recently launched our new environmental sensor network, Folium, and we’re super excited to present this state-of-the-art solution to commercial growers. Launching a new product just before a global pandemic hit, who could plan for that? We are responding to this by changing channels we utilize to connect with our customer base, including more marketing and video conferencing based meetings.”
“In the current climate it’s pretty evident that if you have advanced automation systems and new smart applications to run your farm, e.g. remotely accessible environmental and crop information along with farm management tools, it gives you the freedom to make sure you are aware of what’s happening with your crops and manage them, without having to always be physically on-site. And it minimizes commercial risk. You can’t do without a grower or manager (yet) but you can certainly use solutions that can help — especially during isolation situations, reducing risk to a minimum.” — Darryn Keiller, CEO, Autogrow
Protect Your People
Our product is great food, but great food comes from great, hard-working people, and their health is always key. That means shaking up business, and how we connect with each other on an emotional level, too.
“We restricted international travel earlier in March, we could see that coming. International travel and now domestic have effectively been suspended. Cancellation of trade shows has been the biggest impact, they are how the whole industry operates in terms of customer engagement.” — Keiller
“We are dealing with anxiety and the fear of the unknown with all of the employees. We are all human and struggle with not knowing details and being out of control. So lots of communication, discussions (which are slightly more awkward as we all practice social distancing). Trying to understand all of the new rules and options for employees as we continue to process the changes that are happening on a day to day basis.” — Paul Brentlinger, President, CropKing
A Silver Lining?
There is no doubt that coronavirus is awful in just about every way, but somewhere in there is small but powerful silver lining: it’s making people think seriously about where their food comes from, and what it takes to keep stores and markets full.
As Brentlinger puts, it, “I think it shows us how prepared we need to be for any situation, and how essential we are to the world.”
Amen to that!
Learn more about Contain and funding your indoor ag business at our website, and subscribe to Inside The Box, our weekly newsletter.
Agriculture Food Supply Chain Indoor Agriculture Vertical Farming
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