Benzinga | Jun 16, 2021 03:50PM EDT

AppHarvest Signs Credit Facility Agreement With Rabobank

* Agriculture technology company AppHarvest Inc (NASDAQ:APPH) has signed a credit facility agreement with Rabo AgriFinance, a subsidiary of Rabobank, a Dutch financial services company.

* Rabobank will provide $75 million to expand AppHarvest's network of high-tech controlled environment agriculture (CEA) facilities in Central Appalachia.

* AppHarvest has entered into a 60% loan-to-value mortgage under the credit facility at an anticipated fixed rate of between 4 to 5% for ten years.

* The first farm is expected to be capable of producing more than 40 million pounds of tomatoes annually.

* AppHarvest plans to develop a network of 12 high-tech farms by the end of 2025.

* "The market is showing significant interest in the AppHarvest business model that's driven by environment, governance, and sustainability (ESG) principles to build a climate-resilient food system with more predictable yield and quality," said Jonathan Webb, Chief Executive Officer.

* AppHarvest serves grocery store chains and foodservice outlets such as Kroger Co (NYSE:KR) and Wendys Co (NASDAQ:WEN).

* Barclays analyst Benjamin Theurer initiated coverage on AppHarvest with an Overweight rating and a price target of $25.

* Price action: APPH shares are trading higher by 1.54% at $15.79 on the last check Wednesday.