Hungry for a tomato? Wall Street sure is, sending shares of blank-check company Novus Capital (NASDAQ:NOVS) up big before the closing bell. So what do you need to know about the move in NOVS stock? And how does the upcoming AppHarvest SPAC merger tie in?
To start, investors should understand the basics of the news. Essentially, back in September, Novus Capital announced it would undertake an AppHarvest SPAC merger. This means the special purpose acquisition company would bring AppHarvest to the public markets, allowing the currently private company to start trading on the Nasdaq. AppHarvest touts itself as a leading agriculture tech company that runs high-tech indoor farms. Through these, it grows affordable fruits and vegetables at scale.
Fruits and vegetables? That certainly makes NOVS stock stand out from other SPAC offerings focusing on up-and-coming spaces like electric vehicles and autonomous driving. However, AppHarvest believes its work is necessary. Because of its indoor farming solutions, its produce is available to all consumers, all year long. Additionally, it says its farming requires less rainwater and occurs without chemical pesticides. For many consumers, that gives the upcoming AppHarvest SPAC merger even greater appeal.
But why is NOVS stock on the move today? It turns out that AppHarvest is making some big moves ahead of the deal closing. Today, the company shared it completed its first harvest of Beefsteak tomatoes from a Morehead, Kentucky farm. These tomatoes are en route to Walmart (NYSE:WMT) and Kroger (NYSE:KR) stores, with a big rollout this week.
Although this is a baby step in the long-term plan for AppHarvest, it is still a good sign. With this rollout underway, the company is eyeing production of 45 million pounds of tomatoes, just at the Morehead facility. It is also expanding its farm footprint.
NOVS Stock and the AppHarvest SPAC Merger
So what else do you need to know about NOVS stock and the AppHarvest SPAC merger? In addition to the first tomato harvest, AppHarvest shared some other company news. David Lee, the former Impossible Foods CFO, will now serve as president of AppHarvest. He joins CEO and founder Jonathan Webb at the helm.
Ahead of the merger closing, backing from an Impossible Foods exec is a big sign of confidence. And with a post-merger value of $1 billion, the SPAC deal is not one to scoff at. As you look to a green, produce-filled future, make sure to keep NOVS stock on your radar. Once the deal closes, look for AppHarvest to start trading as APPH.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.