SPAC News: 14 Things to Know About an AppHarvest IPO

AppHarvest news for Tuesday includes an initial public offering that is on the way as it reveals plans for a special purpose acquisition company (SPAC) deal.

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Here’s what investors need to know about the AppHarvest IPO.

  • The deal will have it merging with SPAC Novus Capital Corporation (NASDAQ:NOVS).
  • According to this news, the SPAC will change its name to AppHarvest after the deal is complete.
  • It will also continue to trade on the Nasdaq but will change to a new stock ticker.
  • It will value AppHarvest at $1 billion based on a price of $10 per share for its stock.
  • The deal will also grant it $475 million in gross proceeds to make use of.
  • $375 million of that comes from the private investment in public equity per share price for the stock.
  • Investors in the company include Fidelity Management & Research Company, Inclusive Capital, and Novus Capital Corporation.
  • AppHarvest also notes that it issued a $30 million convertible note to Inclusive Capital.
  • The note was funded on Monday and provides the agriculture tech company with money to run its business.
  • Jonathan Webb, founder and CEO of AppHarvest, will continue to lead the company once the deal closes.
  • The company will also retain its current leadership team after going public.
  • The IPO deal has unanimous approval from both companies’ Boards of Directors.
  • Shareholders of both companies, as well as regulators, will have to approve the deal before it can close.
  • So long as there are no issues, AppHarvest is expecting the deal to close in late Q4 2020 or early Q1 2021.

NOV stock was up 18.5% as of Tuesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/09/spac-news-appharvest-ipo-things-to-know/.

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