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.
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.