AppHarvest Completes “Summer Refresh” and Replanting at Flagship Morehead Farm While Securing Credit Facility with JP Morgan to Continue High-Tech Farm Network Development
30 September 2021 - 10:00PM
AppHarvest, Inc. (NASDAQ: APPH, APPHW), a leading AgTech company,
public benefit corporation and Certified B Corp focused on
delivering fresh fruits and vegetables more sustainably using up to
90% less water than open-field agriculture, today announced it
completed the “Summer Refresh” and replanting of its flagship
high-tech indoor farm in Morehead, Ky. in preparation for the
second season of harvesting.
The more than 700,000 tomato plants in the 2.8 million sq. ft.
facility are expected to reach a mature height of about 40 feet and
begin producing within a couple of months after planting. Thus, the
company continues to expect tomato net sales to be modest in the
third quarter, approximately $300,000 to $400,000, with ramp-up in
the fourth quarter as the planted acreage becomes fully
productive.
“With the late summer refresh and replanting, the AppHarvest
Morehead Farm is on track to start growing tomatoes for Season Two
with lessons learned from our first season integrated into our game
plan for the upcoming harvest,” said AppHarvest Founder and CEO
Jonathan Webb. “We remain on track with our plan to offer new crop
types in addition to tomatoes by the end of next year, and I’m
pleased with the progress across our company as we continue to
focus on delivering a sustainable and climate-resilient food system
that can provide fresh produce at scale from right here in
Appalachia.”
AppHarvest currently is operating one 60-acre high-tech indoor
farm in Morehead, Ky., which is estimated to be able to produce
about 40 million pounds of tomatoes per year, serving some of the
top national grocery store chains and food service outlets. The
company has more farms under construction in Eastern Kentucky that
are expected to produce vine crops, berries and leafy greens. The
Berea, Ky. 15-acre leafy green facility and Richmond, Ky. 60-acre
tomato facility are each approximately 50 percent complete and are
expected to be operational by the end of 2022.
AppHarvest also announced that it has entered a $25 million
cash-backed credit facility with JP Morgan based on its third
high-tech, 30-acre indoor farm under construction that plans to
grow berries in Somerset, Ky., which broke ground in June 2021.
Proceeds from the 364-day credit facility, which is priced at LIBOR
plus 225 basis points, will be applied toward capital expenditures
and improvements, including construction of the company’s fourth
high-tech indoor farm.
About AppHarvest
AppHarvest is an applied technology company in Appalachia
developing and operating some of the world’s largest high-tech
indoor farms designed to grow non-GMO, chemical pesticide-free
produce, using up to 90 percent less water than open-field
agriculture and only rainwater while producing yields up to 30
times that of traditional agriculture on the same amount of land
without agricultural runoff. The company combines conventional
agricultural techniques with world-class technology including
artificial intelligence and robotics to improve access for all to
nutritious food, farming more sustainably, building a domestic food
supply, and increasing investment in Appalachia. The company’s
60-acre Morehead, Ky. facility is among the largest indoor farms in
the world. For more information, visit
https://www.appharvest.com/.
Forward-Looking Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements for purposes of the
safe harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words such as “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,”
“would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” “can,” “goal,” “target” 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 AppHarvest’s value of current and future
investments, intention to build high-tech CEA farms, the
anticipated benefits of and production at such facilities,
AppHarvest’s future financial performance, as well as AppHarvest’s
growth and evolving business 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 Company’s Quarterly Report on Form 10-Q filed with the SEC
by AppHarvest on August 11, 2021 under the heading “Risk Factors,”
and other documents AppHarvest 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.
MEDIA CONTACT: Travis Parman,
Travis.Parman@appharvest.com
INVESTOR CONTACT: Kaveh Bakhtiari,
AppHarvestIR@appharvest.com
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