Benzinga | Jul 27, 2021 11:13AM EDT

AppHarvest Reports Secured $91M Financing Arrangement With Equilibrium Capital For Construction Of Rapidly Growing Network Of High-Tech Controlled Environment Agriculture Facilities

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 while using up to 90% less water than open-field agriculture and only rainwater, announced it has secured a financing arrangement with Equilibrium Capital for $91 million. The arrangement will support AppHarvest's Richmond, Ky. facility already under construction.

The arrangement provides 65.5% loan-to-value financing through a $91M construction loan for the 60-acre high-tech indoor farm Richmond, Ky. designed to grow tomatoes.

"Equilibrium is a sustainability-focused investment firm with institutional expertise in controlled environmental agriculture, which makes AppHarvest a natural partner as they work to drive positive change in agriculture to ensure food security sustainably," said Equilibrium CEO and Chairman David Chen. "We've been supportive of AppHarvest since early in their history and look forward to more opportunities to partner as they build out their network of high-tech, climate-resilient farms."

"Equilibrium sets the bar for impactful investing in assets and companies centered on advanced sustainability principles. Their continued support of our mission shows confidence in our business model to build a climate-resilient food system based on great-tasting, nutritious fresh fruits and vegetables with more predictable yield and quality," said AppHarvest Founder and CEO Jonathan Webb. "Dave Chen and the Equilibrium team have been tremendous partners. Working with the Equilibrium team is helping us blaze new trails in sustainable business."

AppHarvest plans to operate 12 farms by the end of 2025. The company's flagship 2.76-million-square-foot facility in Morehead, Ky. is currently growing and shipping truckloads full of tomatoes to top U.S. grocers and restaurants. Four additional farms are under construction: a 60-acre facility in Richmond designed to grow tomatoes, a 15-acre facility in Berea designed to grow leafy greens, a 30-acre facility in Somerset designed to grow strawberries, and a 15-acre leafy green facility in Morehead.

"AppHarvest is laser-focused on scaling its mission. The financing we're announcing today demonstrates the expected viability of high loan-to-value, non-dilutive capital financing as we remain on track to develop up to 12 high-tech farms by the end 2025," said AppHarvest President David Lee.