AeroFarms, The World Leader In Indoor Vertical Farming, To Become Publicly Traded Company Through Combination With Spring Valley Acquisition Corp

March 26, 2021

NEWARK, N.J.--(BUSINESS WIRE)--AeroFarms, a certified B Corporation, and leader in vertical farming, announced today it has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Spring Valley Acquisition Corp. (Nasdaq: SV) (“Spring Valley”), a special purpose acquisition company. Upon closing of the transaction, AeroFarms will become publicly traded on Nasdaq under the new ticker symbol "ARFM". The combined company will be led by David Rosenberg, Co-founder and Chief Executive Officer of AeroFarms.

Founded in 2004, AeroFarms is widely recognized as the world leader in vertical farming. As a certified B Corporation and public benefit corporation since 2017, AeroFarms is on a mission to grow the best plants possible for the betterment of humanity. Through its innovative growing platform, AeroFarms helps solve issues brought on by macro challenges such as population growth, water scarcity, arable land loss, health consciousness, and supply chain risks like the COVID-19 pandemic. AeroFarms has developed patented and award-winning technology in areas such as plant biology, mechanical design, environmental control, data science, operations, and plant genetics.

Through the integration of these disciplines, AeroFarms achieves up to 390 times greater productivity per square foot annually versus traditional field farming while using up to 95% less water and zero pesticides. With over 250 invention disclosures and a vast library of data collected over 15 years of operations, AeroFarms is continually improving its systems to understand plants at unprecedented levels and solve agriculture-related supply chain issues. Today, AeroFarms sells great-tasting leafy greens products under its Dream Greens brand, which is consistently celebrated by top chefs and tastemakers.

AeroFarms’ Investment Highlights

• AeroFarms is revolutionizing agriculture and has been innovating vertical farming for 15 years.

• $1.9 trillion total addressable market opportunity within its core leafy greens market and other adjacencies.

• Proprietary technology and industry leadership with proven innovation and design evolution through five generations of farm models supported by an experienced team and a robust portfolio of over 250 invention disclosures.

• Data science-driven and fully-controlled technology platform enables AeroFarms to better understand plants and optimize farms while improving quality and reducing costs.

• Commercially selling leafy greens with a brand that is already winning at retail, providing customers with a premium product with superior quality, flavor, taste, and texture.

• Grown over 550 varieties of produce to date and working with key strategic partners to use its growing platform to address broader problems in agriculture.

• Strong projected financial performance driven by demonstrated farm key performance indicators (KPIs) and an accelerated farm rollout schedule.

Management Commentary

Chris Sorrells, CEO of Spring Valley, said, “Our goal was to partner with an industry-leading, best-in-class, sustainability-focused company and we are ecstatic to combine forces with AeroFarms, the market leader in vertical farming, to accomplish this vision. AeroFarms has a technological edge on the industry, developing a world-class innovation team that has fueled a robust and growing intellectual property portfolio of patents and trade secrets. Moreover, their team has been selling commercial product with major retailers, building a trusted brand that is performing well, and developing influential partnerships that will enhance their ability to scale this business quickly. The future is very bright for AeroFarms and we are excited to share this highly compelling ESG investment opportunity by bringing the market leader in the vertical farming industry public.”

David Rosenberg, Co-Founder, and CEO of AeroFarms, added, “At AeroFarms, our mission is to grow the best plants possible for the betterment of humanity, and we are executing on this by taking agriculture to new heights with the latest in technology, innovation, and understanding of plant science. Our technology empowers our operations – this is how we get closer to where the problems, opportunities, and solutions are. We also have the capabilities to innovate fast by turning our crops a typical 26 times per year that allows us to continuously learn and improve yield and quality while simultaneously reducing capital and operating costs. Our business is at an inflection point where we will scale up our proven operational framework and begin our expansion plans in earnest. With the support of Spring Valley, we not only have the capital in place to execute our plan, but also a sponsor who shares the same ESG philosophies to make a positive impact on the world, while serving the interests of our shareholders.”

Transaction Overview

Under the terms of the Merger Agreement, the transaction is valued at a fully diluted pro forma equity value of approximately $1.2 billion assuming no redemptions by Spring Valley shareholders. The PIPE offering was anchored by leading institutional investors, AeroFarms insiders, and Pearl Energy Investments, the sponsor of Spring Valley. The transaction will provide approximately $317 million of unrestricted cash at close to fund future farm development and general corporate purposes.

The transaction has been unanimously approved by the Board of Directors of Spring Valley, as well as the Board of Directors of AeroFarms, and is subject to satisfaction of closing conditions, including the approval of the shareholders of Spring Valley.

Upon completion of the proposed transaction, AeroFarms expects to nominate two of Spring Valley’s existing directors, Debora Frodl and Patrick Wood, III, to its Board of Directors. The remaining directors and officers of Spring Valley are expected to resign and be replaced with AeroFarms nominees, which will be named at a future date.

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 Spring Valley with the Securities and Exchange Commission ("SEC") and is available on the AeroFarms investor relations page at https://aerofarms.com/investors and at www.sec.gov.

Advisors

J.P. Morgan Securities LLC is acting as exclusive financial advisor to AeroFarms. Cowen is acting as a financial advisor to Spring Valley. Cowen and Wells Fargo Securities are acting as capital markets advisors to Spring Valley. J.P. Morgan Securities LLC, Cowen, and Wells Fargo Securities acted as placement agents to Spring Valley in connection with the PIPE offering.

DLA Piper LLP (US) is acting as legal counsel to AeroFarms, Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to the placement agents and Kirkland & Ellis LLP is acting as legal counsel to Spring Valley.

Webcast Information

Spring Valley and AeroFarms management will host a webcast to discuss the proposed transaction on March 26, 2021, at 8:00 a.m. ET. Hosting the call will be Chris Sorrells, CEO of Spring Valley; David Rosenberg, Co-Founder and CEO of AeroFarms; and Guy Blanchard, CFO of AeroFarms.

To listen to the prepared remarks via telephone, dial 1-877-407-0784 (U.S.) or 1-201-689-8560 (international) and an operator will assist you, or via webcast which can be found on AeroFarms’ investor relations website at https://aerofarms.com/investors. A telephone replay will be available through April 9, 2021, at 11:59 p.m. ET by using 1-844-512-2921 (U.S.) or 1-412-317-6671 (international) and pin number: 13718018.

About Spring Valley Acquisition Corp.

Spring Valley Acquisition Corp. is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. While Spring Valley may pursue an initial business combination target in any business or industry, it is targeting companies focusing on sustainability, including clean energy and storage, smart grid/efficiency, environmental services and recycling, mobility, water and wastewater management, advanced materials and technology-enabled services. Spring Valley’s sponsor is supported by Pearl Energy Investment Management, LLC, a Dallas, Texas-based investment firm that focuses on partnering with best-in-class management teams to invest in the North American energy industry.

About AeroFarms

Since 2004, AeroFarms, through its holding company, Dream Holdings, Inc., has been leading the way for indoor vertical farming and championing transformational innovation for agriculture. On a mission to grow the best plants possible for the betterment of humanity, AeroFarms is a Certified B Corporation with global headquarters in Newark, New Jersey, United States. Named one of the World’s Most Innovative Companies by Fast Company two years in a row and one of TIME’s Best Inventions, AeroFarms’ patented, award-winning indoor vertical farming technology provides the perfect conditions for healthy plants to thrive, taking agriculture to a new level of precision, food safety and productivity while using up to 95% less water and no pesticides versus traditional field farming. AeroFarms enables local production to safely grow all year round for its commercial retail brand Dream Greens that has peak flavor always®. In addition, AeroFarms has developed multi-year strategic partnerships ranging from government to major Fortune 500 companies to help uniquely solve agriculture supply chain needs.

For additional information, visit: https://aerofarms.com/.

SEC Filing

Additional Information and Where to Find It

In connection with the business combination, Spring Valley intends to file a Registration Statement on Form S-4 (the “Form S-4”) with the SEC which will include a preliminary prospectus with respect to its securities to be issued in connection with the business combination and a preliminary proxy statement with respect to Spring Valley’s stockholder meeting at which Spring Valley’s stockholders will be asked to vote on the proposed business combination. Spring Valley and AeroFarms urge investors, stockholders, and other interested persons to read, when available, the Form S-4, including the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC, because these documents will contain important information about the proposed business combination. After the Form S-4 has been filed and declared effective, Spring Valley will mail the definitive proxy statement/prospectus to stockholders of Spring Valley as of a record date to be established for voting on the business combination. Spring Valley stockholders will also be able to obtain a copy of such documents, without charge, by directing a request to: Spring Valley Acquisition Corp., 2100 McKinney Avenue Suite 1675 Dallas, TX 75201; e-mail: investors@sv-ac.com. These documents, once available, can also be obtained, without charge, at the SEC’s website www.sec.gov.

Participants in the Solicitation

Spring Valley and its directors and officers may be deemed participants in the solicitation of proxies of Spring Valley’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 Spring Valley’s executive officers and directors in the solicitation by reading Spring Valley’s final prospectus filed with the SEC on November 25, 2020, the proxy statement/prospectus and other relevant materials filed with the SEC in connection with the business combination when they become available. Information concerning the interests of Spring Valley’s participants in the solicitation, which may, in some cases, be different than those of their stockholders generally, will be set forth in the proxy statement/prospectus relating to the business combination when it becomes available.

No Offer or Solicitation

This press release does not constitute an offer to sell or a solicitation of an offer to buy, or the solicitation of any vote or approval in any jurisdiction in connection with a proposed potential business combination among Spring Valley and AeroFarms or any related transactions, nor shall there be any sale, issuance or transfer of securities in any jurisdiction where, or to any person to whom, such offer, solicitation or sale may be unlawful. Any offering of securities or solicitation of votes regarding the proposed transaction will be made only by means of a proxy statement/prospectus that complies with applicable rules and regulations promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and Securities Exchange Act of 1934, as amended, or pursuant to an exemption from the Securities Act or in a transaction not subject to the registration requirements of the Securities Act.

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 press release, regarding Spring Valley’s proposed acquisition of AeroFarms, Spring Valley’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 AeroFarms and Spring Valley 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 AeroFarms and Spring Valley. 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 Spring Valley or AeroFarms 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 AeroFarms; risks related to the expansion of AeroFarms’ business and the timing of expected business milestones; the effects of competition on AeroFarms’ business; the ability of Spring Valley or AeroFarms 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 Spring Valley’s final prospectus dated November 25, 2020 under the heading “Risk Factors,” and other documents Spring Valley 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 Spring Valley nor AeroFarms presently know, or that Spring Valley nor AeroFarms 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 Spring Valley’s and AeroFarms’ expectations, plans, or forecasts of future events and views as of the date of this press release. Spring Valley and AeroFarms anticipate that subsequent events and developments will cause Spring Valley’s and AeroFarms’ assessments to change. However, while Spring Valley and AeroFarms may elect to update these forward-looking statements at some point in the future, Spring Valley and AeroFarms specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Spring Valley’s and AeroFarms’ assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Related articles: The Spoon - Cheddar - Go Dan River - Food Dive

Contacts

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Spring Valley Acquisition Corp.
www.sv-ac.com
Robert Kaplan
Investors@sv-ac.com

Investor Relations:
Jeff Sonnek
ICR
Jeff.Sonnek@icrinc.com
1-646-277-1263

Media Relations:
Marc Oshima
AeroFarms
MarcOshima@AeroFarms.com
1-917-673-4602

Fashion Giant Makes Foray Into Leafy Greens

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Y CHRIS KOMOREK

@ckfruitnet

25th March 2021, London

New Investment In Vertical Farming Company Ljusgårda AB

Comes From Platform Owned By Chairman of H&M

The investment platform owned by H&M chairman, Karl Johan Persson, has invested in Ljusgårda AB, the Swedish vertical farming business based in Tibro.

Reports published by HortNews indicate the vertical farming company is backed by a number of investors, including Philian, which is the investment platform owned by Persson.

Ljusgårda, which produces crispy bagged salads, is planning to use the new investment to expand its production area in order to produce more products.

“We will grow from a cultivation area of 300m2 to 2,500m2, and thus from cultivating two tonnes a month to 60 tonnes when the factory is in full swing after the summer,” Ljusgårda marketing manager Maria Hillerström told reporters. “We will expand with more products this spring.”

Ljusgårda’s chief executive, Andreas Wilhelmsson, added the company is ambitious to expand. “We are looking at a number of possible new locations. As our first factory will soon start producing, it’s time to start financing the growth plans.

“The interest is huge out there. On the one hand, we are joining the sustainability trend, food-tech is starting to become very popular at the same time as this type of company out in the countryside where we are is not so common.”

Lead Image credit: Hort News

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OurCrowd, Waterfund Launch New Water Investment Platform

Waterfund committed $50 million of capital to the OurCrowd managed portfolio, with an initial investment completed in Plenty, Inc., a vertical farming leader.

By ZEV STUB MARCH 22, 2021

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Future Crops will set up a farm to grow vertical agriculture in the UAE. (photo credit: Courtesy)

OurCrowd and Waterfund said Monday they will build a dedicated investment portfolio of 15 leading water and agricultural technology companies. Waterfund committed $50 million of capital to the OurCrowd managed portfolio, with an initial investment completed in Plenty, Inc., a vertical farming leader.

The companies also announced that they are jointly working on a water-focused financial product platform called Aquantos, which they said will "pioneer the issuance of Blue Bonds and other innovative water investment products." “We are working to issue Blue Bonds that can be both climate bonds-certified and backed by sovereign or sub-sovereign borrowers," said Scott Rickards, CEO of Waterfund.

"This new financial tool and others are being designed to enable water projects in the Middle East to acquire leading technologies to address water scarcity in a fundamentally new way.” Sustainable investing assets now total more than $30 trillion globally, with 34% growth over the past two years, According to Morgan Stanley research cited by the companies. In the United States alone, $12 trillion is sustainably invested, they added.“In 2016, the Paris Agreement heightened interest in green bonds; in the years since, we’ve seen a spike in companies, municipalities, sovereigns, and banks issuing green bonds.

We expect that demand for next-generation water-oriented bond products will see similar growth,” Rickards said. “The Abraham Accords present a huge opportunity to bring new water and agricultural technology to the water scarcity challenges of the entire Middle East," said Jon Medved, Founder & CEO of OurCrowd. "Alongside Waterfund, it is our mission to invest in and help build game-changing technology companies. We are excited to be working together with Waterfund to drive more private capital to address the critical challenges of water."

FRANCE: Jungle Says It’s Cracked How To Make Vertical Farms Profitable

“No Matter How Good Your Product Is,

If The Price Is Higher Than The Alternative,

Then You’re Dead.”

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BY FREYA PRATTY

 22 MARCH 2021

Jungle, a French vertical farming company that says it can produce ten to 30 times more food than traditional greenhouses, has raised €42m in new funding. 

The company also says its focus on large-scale farms will help it overcome one of the biggest challenges facing vertical farming: how to make a profit.

Jungle’s new funding, €7m of which is in equity and €35m of which is debt financing, comes from Founders Future, a French investment firm focused on impact startups. Jungle is the firm’s first investment.

The company’s funding comes as the wider industry continues to grow fast. It was worth $2.2bn in 2018 but is expected to reach $12.8bn by 2026. Investor appetite is clearly there: vertical farming giant Infarm raised $170m at the end of last year. 

Jungle is building a 5,500m2 farm 80km from Paris, where crops will grow on stacked platforms. The site is already partly operational and the company has secured contracts with French supermarkets Monoprix and Intermarche. 

At present, it’s growing a mixture of aromatic herbs, greens and, unlike other vertical farms, flowers. It’ll be fully operational by the end of 2021.

Less pesticides, more local and a greater yield

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Gilles Dreyfus, cofounder of Jungle.

“We don’t claim to be instigating a revolution, we are part of an equation that wants to be a solution,” explains Gilles Dreyfus, who cofounded Jungle in 2015. 

For Dreyfus, vertical farming has several advantages. Crops can be grown close to cities, where the majority of consumers are, thereby reducing the environmental costs of transit. 

Plants can also be grown on more frequent cycles than on traditional farms because they’re not seasonally dependent, and they’re also grown without using pesticides. 

“Our most popular product, Green Basil, gives 14 harvests a year in the vertical farm, compared to 3 or 4 in the South of France, where the crop grows best outdoors.” 

National food sovereignty

Being able to grow crops out of season means vertical farming can help countries achieve better food sovereignty, Dreyfus says.

“We have to go further and further from the country to get crops when they’re out of season,” he says. “Brexit import taxes on food have shown the complicated situations this can lead to.”

“If the price is higher, you’re dead”

Despite the benefits, vertical farming has often struggled with how to make a profit. “Having a viable financial model and an efficient farm is the main hurdle for vertical farming,” Dreyfus says.

“No matter how good your product is, if the price is higher than the alternative, then you’re dead.”

The company believes that bigger farms is the answer.  

German company Infarm, which is aiming at profitability by 2023, places microunits into supermarkets. Jungle, which is aiming at profitability in 18 months time, will focus on large-scale production facilities that then supply a whole area.

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“Price depends on scale and we’re not aiming for small-scale farms, we’re aiming for less farms but a lot bigger. If you activate the economies of scale you can get a very reasonable product,” he says.

The company’s aiming to sell food at 5% more than the cost of conventional alternatives, but at 20% less than organic foods grown on farms. 

For Valentine Baudouin, partner at Founders Future which has invested in Jungle, the focus on large-scale farms is the key to profitability, and what makes Jungle stand out. 

“They’ve answered the economic question of vertical farming, which is very important because you have many similar enterprises that haven’t done so.”

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Jungle’s vertical farm warehouse.

Beyond salad?

A criticism often leveled at the vertical farming industry is whether it can grow beyond just salad leaves and herbs. 

Unlike other farms, Jungle also grows flowers for the perfume industry, but Dreyfus says the other crops its working on, including cherry tomatoes and mushrooms, won’t be in supermarkets until 2023.

“You can grow virtually anything you want, except truffles — which is a real shame actually,” says Dreyfus. “But the question shouldn’t be, can we grow it, it should be, do we have the financial model to make it work?”

Jungle’s currently got a team of 25 people based in France, but will use the new funding to double its workforce by 2022. It also plans to open two new large-scale farms in France, including one in the south that’ll be twice as big as its first site. 

Freya Pratty is Sifted’s news reporter. She tweets from @FPratty

March Indoor Ag Science Cafe - March 30th Tuesday 11 AM Eastern US Time

This month's Café Will Introduce A Funding Opportunity

For Small Businesses‘ R&D.

Please sign up, thank you! 

"USDA SBIR Grants Program Overview"

Dr. Steven Thomson & Melinda Coffman
USDA NIFA

SBIR = Small Business Innovation Research

• Please sign up so that you will receive Zoom link info.

• Indoor Ag Science Cafe is an open discussion forum, planned and organized by OptimIA project team supported by USDA SCRI grants.

Sign up here

Polygreens Podcast Episode: 17 - Nicola Kerslake - Contain Inc.

Nicola Kerslake founded Contain Inc, a fintech platform for indoor agriculture, that aids indoor farmers in finding lease funding for their projects. They're backed by Techstars' Farm to Fork program, funded by Cargill and Ecolab.

Latest Episode

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Orlando Ag-Tech Firm Kalera Lands Investment For More Growth

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By Alex Soderstrom

Staff Writer, Orlando Business Journal

March 9, 2021

One of the newest investors fueling growth at indoor farming company Kalera Inc. once was the U.S. agriculture industry's top government official.

The Orlando-based firm on Feb. 24 completed a private placement, a sale of shares to pre-selected investors and firms, that raised the company $31 million, according to financial documents. Among Kalera's latest investors is Sonny Perdue, U.S. secretary of agriculture from 2017-2021 and governor of Georgia from 2003-2011, who will join the firm's board of directors.

This is another big investment round for Kalera, which last year raised $150 million in capital. These funds help the company as it rapidly opens indoor produce growing facilities across the U.S. and eyes international expansion.

Acquisition, expansion

The investment funds Kalera's purchase of vertical farm seed developer Vindara Inc., according to documents. The seeds made by the Durham, North Carolina-based firm will increase output, improve energy efficiency and expand the product pipeline at Kalera, the company announced Feb. 24.

To see inside Kalera's HyCube in Orlando, check out the slideshow above.

Meanwhile, Kalera is expanding to six new cities in 2021 and will add employees to its corporate headquarters in Orlando this year, CEO Daniel Malechuk previously told OBJ. The company has eight open Orlando jobs listed on its website.

The company employs about 75 people, mostly in Central Florida, and will grow its workforce to more than 300 companywide by the end of 2021, Malechuk added.

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Daniel Malechuk | JIM CARCHIDI

'Leading the pack'

The purchase of Vindara was the latest step in Kalera’s rapid expansion since it was founded in 2010. Kalera’s vertical agriculture facilities grow quality-controlled produce year-round. The company operates two facilities in Orlando, and this year will open growing facilities in Atlanta, Denver, Houston, Honolulu, Seattle, and Columbus, Ohio.

The global vertical farming industry has big potential, and it’s expected to be worth nearly $12.8 billion by 2026, according to industry analysis site Report Buyer. Kalera stands out within the lucrative industry, Perdue said in a prepared statement.

“Kalera is leading the pack in a booming vertical farming industry ... Through my travels, I’ve had the opportunity to experience many intriguing ideas in food and agricultural innovation and technology. In my opinion, Kalera captures the intersection of technology and sustainable food production better than anything I have seen."

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Sonny Perdue | BYRON E. SMALL

AppHarvest, Inc. Announces Full-Year 2020 Financial Results

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February 26, 2021

Urbanagnews

Company Introduces First Quarter 2021 Outlook and Updates Full-Year 2021 Forecast

MOREHEAD, Ky. — AppHarvest, Inc. (NASDAQ: APPH, APPHW) (“AppHarvest” or “the Company”), a leading AgTech company and Certified B Corp building and operating some of the country’s largest high-tech indoor farms to sustainably grow affordable, nutritious, chemical pesticide-free non-GMO fruits and vegetables at scale using up to 90 percent less water than traditional open-field agriculture and 100 percent recycled rainwater, announced today its financial results for the full year ended December 31, 2020.

Fiscal Year 2020 Highlights

• Net loss of $17.4 million, compared to $2.7 million in the prior year period in 2019

• Adjusted EBITDA loss of $15.7 million, compared to $2.6 million in the prior year period in 2019

AppHarvest was in a pre-revenue state in 2020 as the company scaled to prepare to become a publicly-traded company and as it ramped up to plant its first crop at its flagship facility, which began harvesting in January of 2021. In 2020, AppHarvest implemented its pioneering AgTech platform, which the company developed through international and advanced technology partnerships with the Dutch government, GE, Signify, Priva, Moleaer, Ecoation and others. Powered by these technologies, AppHarvest is able to drive higher crop yields. The Dutch government is a proven partner with the Netherlands being the No. 2 food exporter in the world because of its controlled environment farming expertise. AppHarvest is leveraging this model at a scale to effectively serve the U.S. market and introduce innovations such as a hybrid lighting array with traditional high-pressure sodium grow lights with LEDs that result in 40 percent reduced energy use. AppHarvest utilizes technology that continuously analyzes data from sophisticated digital monitoring systems composed of more than 300 sensors to analyze micro-climates to optimize growth with tomato plants reaching upwards of 40-feet tall and the first farm alone is expected to produce over 40 million pounds of tomatoes annually.

Business Combination

On January 29, 2021, AppHarvest and Novus Capital Corp., a special purpose acquisition company, completed their business combination to form AppHarvest, Inc. The common stock and warrants of AppHarvest, Inc. began trading on Nasdaq under the new ticker symbols “APPH” and “APPHW,” respectively, on Monday, February 1, 2021. Please see the press release dated February 1, 2021, on AppHarvest’s Investor Relations website for more details related to the business combination at https://investors.appharvest.com/news-and-events/news-releases.

Subsequent to the business combination, AppHarvest had 97,925,153 shares of common stock outstanding. The business combination provided the Company approximately $475.0 million of unrestricted cash, including $375.0 million in gross proceeds from the fully committed common stock PIPE. The transaction proceeds will be used to fund operations, including building additional high-tech controlled environment indoor farms, support growth and for other general corporate purposes, including to fund potential future investments and acquisitions.

First Quarter 2021 Outlook and Fiscal Year 2021 Forecast

The Company currently expects the following results for its first quarter ended March 31, 2021:

• Net revenue to be in the range of $2.1 million to $2.6 million

• Adjusted EBITDA loss to be in the range of $14 million to $16 million

The Company currently expects the following results for its fiscal year ending December 31, 2021:

• Net revenue to be in the range of $20 million to $25 million

• Adjusted EBITDA loss to be in the range of $43 million to $45 million

The Company noted that its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside the Company’s control.

“Our favorable crop yields and market pricing currently support a 2021 sales outlook that is better than we expected in December 2020,” said AppHarvest Founder & Chief Executive Officer Jonathan Webb. “In January 2021, we delivered our first harvest of tomatoes from our flagship 63-acre indoor farm and began shipping to select national grocery retailers. We remain focused on our mission to build a resilient domestic food system for the U.S. to support this outlook in our first year as a public company.”

In addition to better than anticipated crop yields and pricing, the Company has benefited from a temporary decline in market supply related to recent extreme winter weather conditions that prevented transport of produce through Texas from Mexico and that resulted in significant amounts of food waste. Part of AppHarvest’s mission is to create a climate-resilient domestic food system for the U.S. to prevent such supply chain disruptions.     

About AppHarvest

AppHarvest, a public benefit corporation, and Certified B Corp, 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 63-acre Morehead, Kentucky facility is among the largest indoor farms in the U.S. For more information, visit https://www.appharvest.com/.

Farmland Asset Class Holds Strong During Volatile Year; Learn More At Global AgInvesting Events

NEW YORK (January 29, 2021) – Global AgInvesting (GAI) will host the preeminent community of agriculture investment stakeholders at a special edition of its flagship U.S. gathering on 13-15 July 2021 at the prestigious Sleepy Hollow Country Club here, just an hour north of NYC. Uncompromising industry-leading content and networking opportunities will be presented in-person while providing extra precautions for safety at this all-outdoor event.

“Through an unprecedented year of challenges across all businesses, farmland investing stayed resilient and gained greater recognition from institutional investors,” said Kate Westfall, COO of GAI for HighQuest Group, the parent company of Global AgInvesting. “And our global GAI community did not waver in its commitment to advancements and investments in the burgeoning sector during a year of virtual events. We are, however, very excited about coming together again this summer in a unique and safe way.”

The conference agenda will provide insight into agriculture as an impact investment, key in on sustainable strategies in the sector such as opportunities in regenerative agriculture and carbon capture, and highlight the value of investing in the stability of ag, as evidenced by NCREIF, the National Council of Real Estate Investment Fiduciaries (NCREIF) Farmland Index, numbers.

For the first quarter of 2020, NCREIF cited total returns that were down -0.10 percent – the first negative total return for the Index in nearly 20 years. While this might not seem inspiring at first glance, when compared with other indices, it highlights the strength of farmland as an asset class. For example, the Dow Jones Industrial Average finished Q1 having fallen by more than 23 percent, the Russell 3000 Index fell by 20.9 percent for the quarter and the S&P 500 posted a total return for Q1 of -19.60 percent.

“These factors are not unnoticed by institutions who are increasingly focused on stability in their investment portfolios,” said Westfall. “As the food and ag community comes together to find sustainable solutions through ESG initiatives and a commitment to natural capital, we expect to see growing allocations to agriculture as an asset class. GAI will continue to be the source for unrivaled networking and education in the sector, both through our annual conferences and year-round webinars.”

The GAI Community also will gather later this year for Global AgInvesting Asia, 28-29 October in Tokyo, and Global AgInvesting Europe in London, 6-7 December.

Register here for Global AgInvesting in New York, or here for the latest complimentary webinar, or to view any of the nearly 20 previous webinars on topics such as carbon markets, investing in Australian agriculture, COVID-19 and the impact on the agricultural sector, supply chain disruptions and the latest Global AgInvesting Rankings & Trends Report.

Connect with us on LinkedIn, Twitter or Facebook.

# # #

Global AgInvesting, a brand of HighQuest Group, is the world’s most well attended agricultural investment conference series and leading resource for news and insight into the global agricultural sector. www.globalaginvesting.com

VIDEO: Kentucky Greenhouse Company AppHarvest Goes Public On Nasdaq As It Prepares To Grow

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BY LIZ MOOMEY

FEBRUARY 03, 2021

AppHarvest opens a 60-acre greenhouse in Morehead that will provide 300+ jobs and grow organic tomatoes.

AppHarvest has estimated it will generate net revenue of $21 million in 2021.

The company is expected to produce 45 million pounds of tomatoes annually. AppHarvest employs 300 Eastern Kentuckians.

David Wicks, Nasdaq’s vice president of new listings, said he was “incredibly proud to be your partner and look forward to supporting your innovation as a NASDAQ listing company” in a video message Monday.

Founder and CEO Jonathan Webb eats an AppHarvest tomato in a video message displayed in Times Square on Monday.

Two weeks ago, AppHarvest shipped its first bundle of tomatoes from its flagship location in Morehead.

“All this noise that is happening around us — listing on the Nasdaq and being shown in Times Square, selling our tomatoes to the largest grocers in the U.S. — all that is resonating back on the ground inside of our facility where our employees are feeling the positive impact of the work we’re all doing together,” Webb said.

The beefsteak tomatoes are selling out at grocers around the country.

“We can’t grow fast enough,” he said. “Our tomatoes are hitting store shelves and flying off the store shelves. It’s not just Kentucky, it’s everywhere from Indiana, all the way down to Florida.”

Webb said the company’s job now is to build faster and grow more vegetables to get on store shelves.

The company continues to look throughout Eastern Kentucky for building sites, Webb said, but there are challenges.

“We just have to find a place to build,” he said. “We have the capital. We want to build there, but building on these reclaimed coal mine sites are incredibly challenging and very expensive to try to make work. We would love to be there.”

The first greenhouse was originally planned for Pikeville, but AppHarvest said the site, a reclaimed strip mine, was not feasible for construction. After about two years of delays, AppHarvest announced its decision to relocate to a 350-acre parcel about two miles off I-64 near the Sharkey community of Rowan County.

Webb said they continue to invest in Pike County with a container farm at Shelby Valley High School. AppHarvest has two other farms at schools in Rowan and Breathitt counties.

The company aims to have 12 facilities growing and supplying fruits and vegetables by 2025. AppHarvest already announced a Berea facility to grow leafy greens and a Richmond facility to grow vine crops.

“One massive impact of 12 facilities is we’re going to have hundreds of millions of pounds of fresh fruits and vegetables pouring out of our region,” Webb said. “Not only the economic benefits of that, but the health benefits are tremendous. We’re in a situation where not many companies can say they feel incredibly proud of the product they produce and we do that.”

The first AppHarvest tomatoes will be in grocery stores by Wednesday, Jan. 20, 2021.

Photos: COURTESY OF APPHARVEST

LIZ MOOMEY - 704-890-7548

Liz Moomey is a Reporter for America Corps member covering Eastern Kentucky for the Lexington Herald-Leader. She is based in Pikeville.

AppHarvest, A Pioneering Developer And Operator of Sustainable, Large-Scale Controlled Environment Indoor Farms, Becomes A Public AgTech Company

February 01, 2021

AppHarvest and Novus Capital Complete Business Combination

AppHarvest to Begin Trading on Nasdaq as “APPH” on February 1, 2021

Company Reaffirms Full-Year 2021 Guidance

MOREHEAD, Ky., Feb. 01, 2021 (GLOBE NEWSWIRE) -- AppHarvest (“the Company”), a leading AgTech company and Certified B Corp building and operating some of the country’s largest high-tech indoor farms to sustainably grow affordable, nutritious, chemical pesticide-free non-GMO fruits and vegetables at scale using 90 percent less water than traditional open-field agriculture and 100 percent recycled rainwater, and Novus Capital Corp. (Nasdaq: NOVS) (“Novus Capital”), a publicly-traded special purpose acquisition company, announced today that they have completed their previously announced business combination and related charter amendments.

The resulting company is named AppHarvest, Inc. and its common stock and warrants will commence trading on Nasdaq under the new ticker symbols “APPH” and “APPHW,” respectively, on Monday, February 1, 2021. AppHarvest has qualified to list on the Nasdaq Global Select Market, which is the highest of three tiers based on certain financial, liquidity, and corporate governance requirements that the company met. The combined company will be led by Jonathan Webb, AppHarvest’s Founder & Chief Executive Officer.

The Boards of Directors of AppHarvest and Novus Capital unanimously approved the transaction, and the transaction was also approved at a special meeting of Novus Capital shareholders on January 29, 2021.

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Preparing AppHarvest tomatoes for shipping (Photo provided)

 Company Overview

AppHarvest, committed to ESG principles and social impact, is redefining and transforming 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 leverage 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 and employment in Appalachia. The Company operates a 60-acre controlled environment agriculture facility in Morehead, Kentucky — one of the largest high-tech greenhouses in the world — and has an active development pipeline for up to 12 large-scale indoor controlled-environment farm projects through 2025.

AppHarvest has achieved several key commercial milestones since announcing the business combination on September 29, 2020:

• January 19, 2021: Announced first-ever harvest of Beefsteak tomatoes from its 60-acre Morehead, Kentucky, flagship indoor farm, and began shipping to select national grocery retailers. The Morehead facility alone is expected to produce about 45 million pounds of tomatoes annually.

• October 26, 2020: Announced the start of construction on a third high-tech controlled environment agriculture facility in Central Appalachia and expansion into growing leafy greens. Located in Berea, Kentucky, the farm, when complete, will be 15 acres.

• October 20, 2020: Announced the start of construction on a second high-tech controlled environment agriculture facility in Madison County, Kentucky. The farm, when complete, will exceed 60 acres and will double AppHarvest's existing growing space in Central Appalachia.

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

David Lee joined AppHarvest as president on Jan. 25, having previously served in the CFO and COO roles at Impossible Foods and bringing decades of experience across retail and consumer industries driving business transformation and optimizing organizational effectiveness from Del Monte to Zynga to Impossible Foods. He will focus on accelerating infrastructure buildout, strengthening marketing and establishing effective product development processes as AppHarvest works to build an iconic brand that disrupts traditional agriculture.

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

Supported by early sales from its first harvest, AppHarvest reaffirms guidance on full-year 2021 net revenue of $21 million and Adjusted EBITDA of ($41) million provided during its Analyst Day presentation on December 15, 2020. Note, Adjusted EBITDA excludes stock-based compensation and other non-cash items.

“Jonathan Webb and his talented team at AppHarvest have established a unique platform for rapid growth and value creation that will be further strengthened by this transaction and entrance into the public markets,” said Bob Laikin, Chairman of Novus Capital. “We look forward to seeing the team capitalize on the attractive opportunities that lie ahead given the heightened investor focus on ESG initiatives and the secular shift to plant-based foods, as AppHarvest continues to redefine American agriculture.”

Transaction Overview

As a result of this transaction, AppHarvest has received approximately $475 million of gross proceeds, including $375 million from the fully committed common stock PIPE anchored by existing and new investors – including Fidelity Management & Research Company, LLC, Inclusive Capital and Novus Capital. The transaction provides AppHarvest over $435 million of unrestricted cash, 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.

A more detailed description of the transaction terms will be included in a current report on Form 8-K to be filed by AppHarvest, Inc. with the U.S. Securities and Exchange Commission (“SEC”), as well as Novus Capital’s previous filings with the SEC. Once AppHarvest’s common stock and warrants commence trading on Nasdaq under the new ticker symbols “APPH” and “APPHW,” the Novus Capital units (“NOVSU”) will cease trading on Nasdaq.

Cowen served as sole placement agent and capital markets advisor, and Blank Rome LLP served as legal advisor to Novus Capital. Cowen served as financial advisor and Cooley LLP served as legal advisor to AppHarvest.

About AppHarvest

AppHarvest, a public benefit corporation and Certified B Corp, 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, Kentucky facility is among the largest indoor farms in the U.S. For more information, visit https://www.appharvest.com/.

Non-GAAP Financial Measures

The financial information and data contained this press release is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in, or may be presented differently in, any proxy statement/prospectus or registration statement or other report or document to be filed or furnished by the Company with the SEC. Some of the financial information and data contained in this press release, such as EBITDA or Adjusted EBITDA, has not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. A reconciliation for the Company’s 2021E non-GAAP financial measures to the most directly comparable GAAP financial measures is not included, because, without unreasonable effort, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate these non-GAAP financial measures.

The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends. Other similar companies may present different non-GAAP measures or calculate similar non-GAAP measures differently. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by to be presented in the Company’s GAAP financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses are excluded in determining these non-GAAP financial measures. You should review the Company’s audited financial statements prepared in accordance with GAAP, which will be included in a combined registration statement and proxy statement to be filed with the SEC.

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 press release, regarding the business combination, AppHarvest’s expected use of proceeds from the business combination and PIPE, the benefits of the transaction and AppHarvest’s future financial performance, as well as AppHarvest’s growth plans and strategy, ability to capitalize on commercial opportunities, future operations, estimated financial position, estimated adjusted EBITDA, 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 AppHarvest’s management 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. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in the final prospectus/proxy statement filed with the SEC by Novus Capital on January 11, 2021, under the heading “Risk Factors,” and other documents Novus Capital has filed, or that AppHarvest 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. In addition, forward-looking statements reflect AppHarvest’s expectations, plans, or forecasts of future events and views as of the date of this press release. AppHarvest anticipates that subsequent events and developments will cause its assessments to change. However, while AppHarvest may elect to update these forward-looking statements at some point in the future, AppHarvest specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing 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.

Investor Contacts

Chris Mandeville and John Mills
AppHarvestIR@icrinc.com

CubicFarms Announces Change of Financial Year End And Change of Auditor

VANCOUVER, B.C., January 19, 2021 – CubicFarm® Systems Corp. (TSXV:CUB) ("CubicFarms" or the "Company"), a local chain, agricultural technology company, today announced that it has changed its financial year-end from June 30 to December 31. The change in financial year-end has been made to coincide with the financial year-ends for the parent corporation and all its subsidiaries.

For details regarding the length and ending dates of the financial periods, including the comparative periods of the interim and annual financial statements to be filed for the Company's transition year and its new financial year, reference is made to the Notice of Change in Year-End filed by the Company on SEDAR pursuant to Section 4.8 of National Instrument 51-102, a copy of which is available electronically at www.sedar.com

In addition, the Company has changed its auditor from MNP LLP (the "Former Auditor") to KPMG LLP (the "Successor Auditor"). At the request of the Company, the Former Auditor resigned as the auditor of the Company effective January 7, 2021, and the Company appointed the Successor Auditor as the Company's auditor effective January 7, 2021, until the next Annual General Meeting of the Company.

"We would like to thank MNP for their expertise and guidance and we are pleased to announce that KPMG will be our auditor going forward," said Dave Dinesen, CubicFarms' CEO.

There were no reservations in the Former Auditor's audit reports for the period commencing at the beginning of CubicFarms' two most recent financial years and ending at the date of the resignation of the Former Auditor. There are no "reportable events" (as the term is defined in National Instrument 51-102 – Continuous Disclosure Obligations) between the Company and the Former Auditor.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About CubicFarms

CubicFarms is a local chain, agricultural technology company developing and deploying technology to feed a changing world. Its proprietary technologies enable growers around the world to produce high quality, predictable crop yields. CubicFarms has two distinct technologies that address two distinct markets. The first technology is its CubicFarms™ system, which contains patented technology for growing leafy greens and other crops indoors, all year round. Using its unique, undulating-path growing system, the Company addresses the main challenges within the indoor farming industry by significantly reducing the need for physical labour and energy, and maximizing yield per cubic foot. CubicFarms leverages its patented technology by operating its own R&D facility in Pitt Meadows, British Columbia, selling the system to growers, licensing its technology, and providing vertical farming expertise to its customers.

The second technology is CubicFarms' HydroGreen system for growing nutritious livestock feed. This system utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour, and water. The HydroGreen system is fully automated and performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding – all with the push of a button – to deliver nutritious livestock feed without the typical investment in fertilizer, chemicals, fuel, field equipment, and transportation. The HydroGreen system not only provides superior nutritious feed to benefit the animal but also enables significant environmental benefits to the farm.

For more information, please visit www.cubicfarms.com

Hydrobuilder Holdings Raises $70 Million And Combines West Coast Hydroponics Chain With Online Retailer

January 15, 2021

Published by NCV Newswire

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Hydrobuilder Holdings Acquires Hydrobuilder.com and GreenCoast Hydroponics to Form a Leading Omni-channel Seller of Specialty Agriculture and Hydroponics Equipment and Supplies

Secures over $70 million in financing from broad base of investors

PALM BEACH, Fla.-January 15, 2021-(BUSINESS WIRE)–Hydrobuilder Holdings LLC (“Hydrobuilder Holdings”) today announced its formation through the acquisitions of Hydrobuilder.com, a leading online retailer of hydroponics and horticultural supplies, and GreenCoast Hydroponics, the second largest hydroponics retailer in the United States, to create a leading omni-channel retailer of specialty agriculture and hydroponics equipment and supplies. Hydrobuilder Holdings secured over $70 million in financing from a broad group of investors, led by Broadband Capital Investments. As part of the transaction, the sellers of both Hydrobuilder.com and GreenCoast Hydroponics retained a meaningful equity stake in Hydrobuilder Holdings.

Hydrobuilder Holdings will be led by Markus Hockenson, Chief Executive Officer, and Avi Levine, Chief Financial Officer, both of whom bring extensive digital and retail experience, and a proven track record of driving revenue, earnings growth and value creation at private-equity owned companies. Hydrobuilder.com and GreenCoast will continue to be operated by their existing management teams under the newly-formed Hydrobuilder Holdings platform and substantially all team members from Hydrobuilder.com and GreenCoast will remain with Hydrobuilder Holdings.

Mr. Hockenson previously served as President and Chief Executive Officer of International Car Wash Group and Vision Group Holdings, and has served in leadership positions at Enterprise Rent-a-Car, Starbucks, Advance Auto Parts, and TBC Corporation (Tire Kingdom). Mr. Levine previously served as Chief Financial Officer of International Car Wash Group, and has additional experience at Deloitte Consulting, Versa Capital Management, Flashpoint College and Driven Brands.

“We are excited to bring together two proven leaders in hydroponics e-commerce and brick-and-mortar retail as the initial partnerships within Hydrobuilder Holdings, which we believe is poised to be a leading omni-channel seller of specialty agriculture and hydroponics equipment and supplies,” said Hockenson.

Hydrobuilder Holdings is uniquely positioned to provide commercial growers and home gardeners with the highest level of service, product selection, education and value.

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Markus Hockenson, Chief Executive Officer

With strong investor support and significant follow-on interest from our investors, we have substantial growth capital to execute our organic and M&A growth strategies, and see significant opportunities to expand these businesses in the rapidly growing hydroponics, specialty gardening and controlled environment agriculture (CEA) markets.

Hydrobuilder.com Founder and President, Justin Marshall, commented, “Partnering with GreenCoast and joining Hydrobuilder Holdings is a dream come true. I am incredibly grateful and excited to be working alongside these experts and pioneers within the hydroponics industry as well as professionals from many outside business ventures. The combined knowledge and experience will allow us to take the Hydrobuilder.com platform and apply it to some of the most successful brick-and-mortar stores in our space by utilizing our custom IT infrastructure, which enhances automation while also providing an omnichannel approach to sales for our customers. With this combination, we’ll be able to scale and automate at a far greater speed than what was possible on our own. The amount of industry and historical knowledge will allow us to further position ourselves as a leading online retailer of hydroponics equipment and supplies.”

Jordan Weiss, Chief Executive Officer of GreenCoast Hydroponics, said, “We couldn’t be more excited to see our business develop and grow into an omni-channel national model. This will better integrate and support our customers’ needs across all of our three pillars: e-commerce, retail and commercial. Along with better serving our customers, we feel great about how this partnership will support our employees and the culture that we have worked 20+ years to build.”

Michael Rapp, Managing Partner of Broadband Capital Investments, added, “We are excited to be investing in the formation of Hydrobuilder Holdings. Justin, Jordan, and their respective teams have built best-in-class companies and have deep domain knowledge. Markus and Avi are world-class executives who understand how to drive efficiencies and scale enterprises, both organically and through acquisitions. We are serving a nascent but fast-growing end market and our customers are in need of a local supply chain partner who can offer a suite of products and services to solve problems and add value. We are excited by this opportunity and we look forward to building a leading company in this space.”

About Hydrobuilder.com

Founded in 2011, Hydrobuilder.com is based in Northern California and has rapidly grown to become a leading online retailer of hydroponics and horticultural supplies. The management team previously helped Build.com grow to over $1 billion in sales, and has built Hydrobuilder.com into a complete online hydroponic gardening center that is known for having the top product lines, a fast, user-friendly website and knowledgeable employees.

About GreenCoast Hydroponics

Founded in 1999, GreenCoast is a Southern California-based specialty agriculture/hydroponics products retailer and the largest independent retailer of its kind in the United States. GreenCoast operates 12 stores (10 in California, 1 in Las Vegas, and 1 in Portland, OR), that provide equipment, plant consumable products, and design services to growers ranging from the hobbyist to the largest licensed commercial operators. Senior management is known throughout the industry as experts in design of large-scale industrial growing facilities.

About Broadband Capital Investments

Broadband Capital Investment (BCI) is a boutique merchant bank that invests in high growth industries. BCI (and/or its affiliates) was the founding investor in Vroom.com (Nasdaq: VRM), a leading used car e-commerce company, co-led the management buyout of Hydrofarm Holdings (Nasdaq: HYFM), a leading hydroponics manufacturer and distributor, prior to its initial public offering, and invested in Montrose Environmental (NYSE: MEG), an environmental services provider offering measurement & analytical services as well as environmental resiliency & sustainability solutions.

Original Press Release

Published by NCV Newswire

BROADBAND CAPITAL, GREENCOAST, HYDROBUILDER, HYDROPONICS

Indoor Farming Services Provider Agrify Sets Terms For $25 Million IPO

Renaissance Capital Renaissance Capital

January 13, 2021

Agrify, which provides turnkey indoor farming solutions, announced terms for its IPO on Wednesday.

The Burlington, MA-based company plans to raise $25 million by offering 2.8 million shares at a price range of $8 to $10. At the midpoint of the proposed range, Agrify would command a fully diluted market value of $115 million.

The company claims to differentiate itself with a bundled solution of equipment, software, and services that is turnkey, end-to-end, fully integrated, and optimized for precision growing. Revenue mainly comes from core hardware products, the Agrify Vertical Farming Unit, as well as facility build-outs. Agrify provides products to a variety of agricultural segments, citing cannabis as a key market opportunity.

Agrify was founded in 2016 and booked $9 million in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol AGFY. Maxim Group LLC and Roth Capital are the joint bookrunners on the deal.

The article Indoor farming services provider Agrify sets terms for $25 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2020’s Indoor Farm Venture Capital Bonanza

In the face of a dismal year, indoor agriculture saw record fundraising from venture capital and other private investors in 2020. "The industry raised US$565mm in 2020. This figure excludes several notable rounds where the amounts raised were not publicly disclosed," says Nicola Kerslake, CEO of Contain. 

"New Jersey-based vertical farmer AeroFarms was one of four recipients of funding from the Abu Dhabi Investment Office for its Dubai farm. Late in the year, automated vertical farmer 80 Acres raised a round from British bank Barclays. Elsewhere, at-home kit provider Back to the Roots added a prominent Saudi sustainable ag supporter to its existing investor list for an October 2020 round. Even without these rounds, 2020’s total was up nearly 50% on 2019 and represents a record for the industry, besting 2017’s US$391mm," states Nicola.   

Credits: Contain

According to Nicola, vertical and greenhouse farms again represented the bulk of funding, thanks to large rounds from majors such as Bright Farms (US$100mm), Gotham Greens (US$87mm), InFarm (US$170mm), and Plenty Ag (US$140mm). Outside of this, a notable trend was that industry suppliers are now beginning to interest investors. For instance, greenhouse computer vision tech provider iUNU raised a $7mm round led by frequent agriculture investors S2G Ventures and Ceres Partners. Contain Inc, the fintech platform that I lead, has itself been a part of this trend, raising a funding round from the US and European investors at the tail end of 2020.

"This resurgence can be traced to several factors. Most important is the lure of all manner of sustainable agriculture in a world where everyone seemed to become food-obsessed during lockdowns.  Increasing industry participation from large produce buyers has also played a part, as they’re seen as an indication of the industry’s viability by venture capital investors," Nicola adds.  

In addition, venture capital funds are typically thematic investors, and COVID rendered several of these themes obsolete and encouraged venture capitalists to pivot to new ones. "For example, some parts of the ultra-hot sharing economy theme that spawned companies like Uber suddenly look less alluring when consumers are loath to share space. Meanwhile, themes around health and wellness became far more attractive, benefiting adjacent industries such as indoor agriculture," Nicola affirms. 

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Credits: Contain

"Going forward, venture capital funds still have plenty of dry powder for investment, after a healthy fundraising environment for them in 2020", says Nicola. Industry researcher PitchBook says that funds raised by venture capital firms rose by nearly a quarter over 2019 levels.[1] The year’s strong IPO (stock market listing) market helped, with tech favourites like AirBNB and DoorDash going public. Indoor agriculture remains a minority sport for investors, 2020’s record haul represents less than that raised in the year by stock trading app Robinhood alone. Nicola adds: "Given this, it’s perfectly possible that we may see another record-breaking year for indoor agriculture in 2021."

For more information:
Contain
nicola@contain.ag
www.contain.ag

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5 Jan 2021
Author: ebekka Boekhout
© VRerticalFarmDaily.com

Tips To Reduce Vertical Farm Costs

There are a number of key variables to consider when setting up your own vertical farm that calls for considerable financial clout. Light Science Technologies offers a bespoke solution that helps growers to achieve maximum yield while saving costs and energy. 

The rising AgriTech start-up offers the first of two features offering tips to help you to reap optimum results and high returns.

Tip 1: Location, location, location
While you don’t need as much land as traditional growing, finding the right location for your vertical farm is crucial. The wrong location can prove a costly mistake, so do your homework before committing. Do you have the right local infrastructure in place to get your product to your buyer as efficiently as possible? Can you source enough electricity? How much does water cost in this county compared to the next one over? 

Tip 2: Minimize energy costs
However, energy-efficient your operation is, you’re still going to use a huge amount of electricity every year. The most cost-effective solution might be to create your own renewable energy. That isn’t possible for all sites, but even micro-generation could help to bring your OPEX down. 

Tip 3: Engage the experts
Let’s be frank: vertical farming is no small subject. Start building relationships as early as possible with people who know everything on it, from lighting and data to botany. 

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Tip 4: Balance OpEx and CapEx costs
Think big picture in terms of cost. Spending more initially could reap rewards later on. For instance, heavier investment in technology in order to automate seeding, feeding, watering and harvesting will require a greater initial outlay, but a far smaller workforce; labour costs can easily account for over 50% of a vertical farm’s OpEx. 

According to CambridgeHOK, a small vertical farm with minimal automation costs around £1,000 per square metre to set up. A large farm with full automation will cost in the region of £3,000 per square metre. You’ll also need to factor in OPEX differences to the growing system you choose (hydroponic, aeroponic, and/or aquaponic).

Tip 5: Don’t cut corners
Buy wisely. Avoid gambling on cheaper products, such as mass-produced imported lighting. Ensure major costs come with decent guarantees and support in place should anything go wrong. 

Cutting corners now could cause repercussions later down the line, and not just in maintenance and replacement costs. Cheaper options could spell inflexibility, killing your vertical farm’s true potential.

6. Choose your crops carefully
There are pros and cons to different types of crops. Quick-growing plants tend to be cheaper to grow, resulting in an abundance of product. However, some slower-growing crops, such as medicinal cannabis, can earn you far more per plant. Some crops require less energy. Others take up less space so you can pack more in. Fastidious research and number crunching will help you to choose the best option for your own vertical farm.  

Tip 7: Know your audience
Assuming there’s a market for what you’re growing is where you could fall short. Many vertical farmers focus on fast-growing salad crops. In an optimized environment, you could end up producing 30 tonnes of salad a day. But can you guarantee sales of lettuce through the depths of winter? Potentially, this could either mean considerable wastage or letting part of your vertical farm sit idle for weeks on end, which will mean diminishing returns. 

Sound planning and organization from the start is essential and will enable you to factor in a different crop switch every few months with flexible lighting systems if required. 

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For more information:
Light Science Tech 
Claire Brown, PR Consultant
claire.brown@lightsciencetech.com
www.lightsciencetech.com 

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Publication date: Fri 8 Jan 2021

“There Is Abundant Liquidity But A Lack of Solid Business Cases”

“I come across many vertical farming concepts. There are some very interesting developments going on in the market. Especially for investors, because vertical farming is future-focused,” says Jobbe Jorna, Founder and Managing Partner at Upstream Capital. The Amsterdam-based organization advisory boutique is specialized in helping companies realize their full potential with performance improvement and corporate finance.  

“Multiple investors are looking into (inter)national vertical farming projects. There’s abundant liquidity but a lack of solid business cases.” According to Jobbe, as a result of the pandemic investors are becoming increasingly critical, also in the Netherlands. They take more time for a thorough analysis, walking through the entire process teaming up closely with stakeholders. In the end, this is only beneficial for farmers because it contributes to the design, build, finance, maintain, and operate a solid foundation to build a successful farm upon. 

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Jobbe Jorna

Sharp review of business cases
Jobbe says that there are three common mistakes that he comes across frequently when reviewing business cases. Firstly, farmers need to develop a strategic competitive advantage with sufficient upside potential. The business case has to be scalable. Secondly, the value proposition has to be validated, tested, and ready-to-market. “Don’t put too much R&D into it, Bear in mind, an idea does not immediately make a working concept. Let alone a winning go-to-market proposition that can be achieved,” Jobbe adds.

“Investors want to see a rock-solid value proposition with upside potential and a powerful management team with strategic business partners, backing up the company. Most investors don’t go onboard if there isn’t a worthy team with a strong and proven track record.” Finally, farmers should look outside the box as in horizontal integration within the value chain, long-term off-take contracts. In the past, we successfully realized sustainable energy projects in greenhouses driven by long-term contracts at a middle price. In this way, we can secure the business case against crop price fluctuations. As a result, the business case attracts more interest from potential financiers, in the wide range of business angels and investors to banks.”

Key takeaways
Cultivation is your core, says Jobbe, then start with the end in mind. Who is the end customer, what are the current needs, and what are tomorrow’s needs? Rethink the value chain and develop your own eco-system of strategic partners. Farmers need to their homework. Start in time, as it’s more challenging than people think. You need to have a rock-solid business plan in place prior to approach potential investors.

Jobbe says that when a business plan is solid enough, farmers should put together a game plan before going out and start to approach potential investors. “If that’s done too early, your process, time and wallet for that matter will take a sufficient hit. When growers are in a negotiation phase with investors, they should follow a structured approach. Keep your options open, your eye on the ball as the negotiation window is a moving target and always respect your walk-away point. Especially now, during the pandemic, growers should not be seduced by an unfair proposal.” 

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For more information:
Upstream Capital
Jobbe Jorna, Founder and managing partner 
+316 1518 4909
jobbe.jorna@upstreamcapital.nl 
www.upstreamcapital.nl 

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Publication date: Thu 7 Jan 2021
Author: Rebekka Boekhout
© VerticalFarmDaily.com

Agri-Tech Startup Granted £566,000 To Develop Growth Chambers

Innovate UK, the UK’s innovation agency has just awarded Grobotic Systems and their consortium partners a grant worth £566,000 to fund the development of their cutting-edge growth chamber and to support the UK Government’s Industrial Strategy to transform food production. 

Agri-tech startup Grobotic Systems believes the best way to deliver this promise is with their latest invention, a new class of plant growth chamber loaded with high-tech sensors and plugged into the internet. This state-of-the-art growth chamber will help vertical farmers identify the best way to grow plants to produce the most nutritious and environmentally-friendly food possible. 

Managing director, Dr. Moschopoulos says “Through collaborating with industry leaders in photonics, controlled environment agriculture, and plant physiology, this funding enables Grobotic Systems to recruit additional staff, accelerate product development, and access the rapidly growing global vertical farming market with our innovative growth chamber technologies.” 

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“Driven by the need to reduce the environmental impact of agriculture, and to improve the nutritional quality and availability of fresh produce, the vertical farming market is a very exciting place to be for an agri-tech startup-like Grobotic Systems. Our novel technologies will help farmers grow healthier food more efficiently - that is better for the environment, better for the farmer, and better for the consumer.”

This project builds on the patent-pending growth chamber technology developed by Grobotic Systems over the past year. Grobotic Systems will lead this project in collaboration with partners from the Fraunhofer Centre for Applied Photonics, Stockbridge Technology Centre, and the University of Sheffield. 

Founded in 2018 by Dr Alexis Moschopoulos, a plant geneticist, and Richard Banks, an electronics engineer, Grobotic Systems is a Yorkshire-based startup engaged in the design and manufacture of innovative plant growth chambers for plant science research.

For more information:
Grobotic Systems
Alexis Moschopoulos, managing director
alexis@groboticsystems.com
www.groboticsystems.com 

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Publication date: Fri 8 Jan 2021

Indoor Ag Fintech Startup Contain Raises Investment Round, Adds Industry Veteran To Team

NEWS PROVIDED BY Newbean Capital

January 04, 2021

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Image from Contain Inc

A Techstars graduate, Contain Inc works with industry vendors and more than 20 lenders to facilitate access to capital for North American indoor growers.

We have plans to introduce new ways to support the burgeoning indoor agriculture industry in 2021, and this funding round will allow us to do just that.”— Nicola Kerslake, Founder, Contain Inc

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Image from Rooted Global

RENO, NV, UNITED STATES, January 4, 2021 /EINPresswire.com/ -- Contain Inc, a fintech platform dedicated to indoor agriculture, today announced that it has closed a round of funding from investors in the US and Europe. They represent investments from indoor agriculture, food and beverage, entertainment, and financial industries. The funds will enable further technology development as well as new initiatives that support indoor agriculture. The industry has become ever more relevant in the time of COVID as consumers and produce buyers alike recognize the benefits of local secure produce supply.

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Image from Contain Inc

A Techstars graduate, Contain Inc works with industry vendors and a pool of more than 20 lenders to facilitate access to capital for North American indoor growers of all sizes. In 2020, Contain collaborated with Singapore family office ID Capital to introduce a microlearning platform, Rooted Global, that enables corporate employees to grow a little of their own food at home. Its clients include tech and food majors, such as Danone and Dole. Nicola Kerslake, founder of Contain Inc, added: “We have plans to introduce new ways to support the burgeoning indoor agriculture industry in 2021, and this funding round will allow us to do just that.”

In addition, Chris Alonzo, President, and CEO of Pietro Mushrooms, will join Contain Inc to provide consulting services to future leasing clients. Chris brings a wealth of experience in planning, constructing and managing indoor farms across two continents. He is a third-generation mushroom farmer in Kennett Township, PA, an area that supplies half of the US’s mushroom supply. Nicola Kerslake said: “we’re frequently approached by indoor farmers planning large new projects and are delighted to be able to offer the services of such an experienced grower to those looking to bolster their plans before seeking financing.” Chris Alonzo added: “I’m excited to bring my expertise to Contain Inc’s fast-growing team and to engage with a startup that has long supported indoor farmers”.

The Company will also be expanding its team in business development, marketing and product development over the coming weeks, and encourages those seeking roles in this exciting space to visit its website at contain.ag for more details.

About Contain, Inc.
Contain Inc is a US-based fintech platform dedicated to indoor agriculture, growing crops in warehouses, greenhouses, and container farms. The Company works with leading equipment vendors and with an expanding pool of lenders to aid indoor growers in finding funding for their farms. It is also home to microlearning platform Rooted Global, which works with majors such as Danone and Dole to enable employees to grow a little of their own food at home. The Company graduated from the 2019 Techstars Farm to Fork program, backed by Cargill and Ecolab.
More information: https://contain.ag, https://rooted.global

Nicola Kerslake
Contain Inc.
+1 7756237116
email us here
Visit us on social media:
Twitter
LinkedIn

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Who Will Win In Indoor Agriculture?

According to Allison Kopf, CEO of Artemis, there are five ways big players will enter indoor agriculture. "The indoor agriculture (both greenhouse and vertical farming) market is one of the fastest-growing industries. Big companies in agriculture and technology are trying to figure out ways to capitalize on the rapid growth of the industry."

"Artemis, the leading software infrastructure company in the industry, which allows us to have a front-row view of how the industry is growing and what the industry needs," says Allison. "Our market has historically been fragmented, where legacy companies have been growing for decades and new players have emerged more recently with innovative models to stake their ground as market leaders. Most of the growers are trying to displace traditional field-grown commodities and increase domestic (i.e. in their local country) production of fresh produce; and we’re seeing this shift, as well."

Allison says that in the 1990s in the United States, the number of tomatoes consumed grown in greenhouses was negligible. Now, only 20 years later, close to 40% are grown indoors. This shift isn’t just happening with tomatoes, it’s happening with crops best suited for indoor growth, such as lettuce, herbs, cucumbers, peppers, and increasingly berries.

"In this industry, unlike more traditional commodity markets, we have no dominant suppliers (inputs, chemicals, finance, technology) yet. Bigger companies have largely left the market open for smaller specialized companies and startups. But this is about to change. The indoor market has shown it’s a lasting and major component of our agricultural supply chain and someone will enter this market with a goal of winning. So, who will it be?"

"I believe the winner will own one or more of the areas below," says Allison. 

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Data
Companies who understand grower workflow, farm financials, operational data, and biological data will have a distinct advantage in the battle for the market. This creates an opportunity for folks like lighting, breeding, climate control, greenhouse manufacturers, lenders, and others.

According to Allison this isn’t just about getting closer to the farmer, it’s also an opportunity to develop technologies faster and to have commercial R&D capacity at your fingertips. "Lighting, for example, is one of the most impactful components for growing indoors. Yet, lighting companies have no access to yield information or quality information from the growers."

With access to on-farm information, lighting can become proactive and intelligent, rather than the PLC technology of the past. Signify and Osram are already leaders in horticultural lighting and are likely in a strong position to start offering intelligent lighting solutions. "Watch out for breeding companies here too. Unfold recently launched with $30m in funding from Bayer to breed indoor crops. I would expect others like Syngenta and Rijk Zwaan to follow with similar initiatives," Allison affirms. 

Finance
There is an estimated $20 billion gap in project finance over the next 3-5 years for greenhouse and vertical farm construction in the United States alone. Agricultural companies who have lending capabilities, like ADM, Bunge, Cargill, Dreyfus, and others will find indoor agriculture opportunities less risky from a growing standpoint than traditional commodity investments. Lenders will need to get comfortable with the relationship-heavy buying market and the lack of offtake contracts in produce but should be able to underwrite with growers who sell to known retailers, like Costco, Walmart, and Target.

"Many growers also have a need for an operating line of credit, often needing to buy in bulk for consumables like seeds, growing media, and chemicals to obtain better pricing. With some buyers, growers face long receivables periods, which also hurt operating cash flow," says Allison.

Ultimately, legacy agriculture companies who lend to agricultural producers will win by creating financial products for the indoor agricultural space and by partnering with the technology producers who can help de-risk the investment. This opportunity will open up billions of dollars in new revenue for someone on a relatively short timeframe.

Traceability
Product recalls and supply chain blind spots hurt everyone in the ecosystem. Bigger agricultural companies have started adding traceability to their strategic plans. Many are testing out blockchain-based technologies. Allison says that others are focused on digital workflow platforms. For the most part, companies haven’t yet figured out how to stretch all the way back to the farmer and this is where the most opportunity lies with indoor agriculture, in particular. 

Because indoor agriculture is more predictable, companies who can track product from input to crop to finished good and all the way through the supply chain will have a critical advantage over others. Retailers like Walmart and Target are making this a priority and have the potential to disrupt their supply chains dramatically with indoor agriculture.

"Let’s say Walmart partnered with indoor producers for 100% of their salad greens, tomatoes, cucumbers, peppers and berries. While implementing this, they set traceability standards for producers and required compliance with those standards. This would not just ensure safe products that are normally high-risk for consumers, it would also enable stable year-round supply of products (with accurate forecasting) for Walmart and would lay the groundwork to move the needle dramatically on sustainability. This means less food waste, more efficient production, stable year-round products, safer, and more sustainable production," says Allison. 

It’s not just retailers who can set the bar when it comes to traceability. Large technology companies like Schneider Electric who have their technology in the hands of all the components of the supply chain, from grower to retailer, are also in a unique position to offer end-to-end traceability products.

Consumables
Consumables are another exciting opportunity for more traditional players entering the indoor agriculture market. Today, growers buy products from many individual suppliers. This drives the price up and makes reliability difficult. If one supplier is out of a product, growers are forced to buy new untested products or find another supplier on short notice.

Large greenhouse growers are often importing products from other countries and buying in bulk just to try to reduce price. And there’s a severe lack of transparency for both pricing and performance. Because the industry is moving so quickly, growers are left to buy based more on marketing claims than on actual performance.

Allison adds: "Indoor growers spend a lot of money on inputs each year and are willing to do so because quality has a direct impact on pricing. This is a drastically different approach from traditional commodity markets where yield is the prime, if not only, driver for financial performance. Because of this, growers tend to pay a premium for inputs to impact not just yield but quality as well."

Farmer’s Business Network has created a marketplace to solve for exactly this type of challenge in the inputs space. This market is ripe for an offering like this. Large chemical companies like OCP and ICL should also be paying attention to this market as specialty products will likely emerge as one of the largest product categories over the next few years.

Digital workflow
Companies like Trimble, John Deere, Syngenta, and Corteva have started making inroads in digital workflow products. None of the products designed for workflow in the field cover the workflow of indoor agricultures.

"In indoor agriculture, you need to couple the traditional cultivation processes and biology of growing with a manufacturing mindset. In indoor agriculture, the growth times are dramatically shorter than in field, so the challenges are more aligned with a factory. You’re thinking about how to manage space, time, and throughput on a continuous basis. It’s just-in-time inventory management," Allison states. 

Understanding this workflow is critical to all of the other items listed above. This is what drives proper data collection, ensures traceability, and enables models like financing or a consumables marketplace. Companies who have a deep understanding of inventory management, like NetSuite, Sage, SAP, and Microsoft might do well capitalizing on this new industry. Other agricultural companies who also work in the construction and manufacturing space, like Trimble, might also win here.

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For more information:
Artemis 
Nathalia Delima
ndelima@artemisag.com 
www.artemisag.com 

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Publication date: Mon 4 Jan 2021
Author: Rebekka Boekhout
© VerticalFarmDaily.com