AppHarvest Announces $50 Million in USDA Secured Funding for 30-Acre High-Tech Indoor Farm in Somerset, Ky.
Loan guarantees replace $50 million credit facility and free up additional cash
MOREHEAD, Ky., Aug. 01, 2022 (GLOBE NEWSWIRE) — AppHarvest, Inc. (NASDAQ: APPH, APPHW), a sustainable food company, public benefit corporation, and certified B Corp, is building some of the world’s largest high-tech indoor facilities. technology in the world. farmers to grow nutritious, affordable fruits and vegetables at scale while creating good jobs in Appalachia, today announced it has secured $50 million in two loans backed by the United States Department of Agriculture ( USDA) through Greater Commercial Lending (GCL), a subsidiary of Caisse Populaire du Grand Nevada. The funding supports AppHarvest’s high-tech indoor berry farm in Somerset, Ky., which is approximately 84% complete and expected to be operational by the end of the year.
“Securing non-dilutive sources of capital to fund our growth has been a top priority since its IPO early last year, and I am delighted with our team’s ability to find lower-cost funding in an environment of higher cost loan,” AppHarvest said. President David Lee. “This funding agreement with the USDA allows us to continue to grow our operations as we plan to bring the Somerset Farm and two additional CEA (controlled environment agriculture) facilities online before the end of the year, which would quadruple our agricultural network and would diversify our product portfolio to include berries and salad greens.
The USDA guarantees 80% of the funding arranged by GCL for the Somerset Berries facility through its USDA Business and Industrial Development Initiative and the USDA Rural Development Program. Each loan has a 23-year term with a rate that resets every five years based on the Federal Home Loan Bank’s five-year advance rate plus 340 basis points and bears interest only for the first three years.
The funding closed on July 29. Part of the funds will be used by the company to satisfy an existing $46 million loan from JP Morgan that was used in part to finance the initial construction phase of AppHarvest’s Somerset Farm.
AppHarvest is a sustainable Appalachian food company that develops and operates some of the world’s largest high-tech indoor farms with robotics and artificial intelligence to build a reliable, climate-resilient food system. AppHarvest’s farms are designed to grow produce using sun, rainwater, and up to 90% less water than open-field cultivation, while producing yields up to 30 times greater than those of traditional agriculture and preventing pollution from agricultural runoff. AppHarvest currently operates its flagship farm – about the size of 50 football fields – in Morehead, Ky., producing tomatoes. The company is developing a network of farms to produce a variety of vine, salad greens and berry crops with three more farms currently under construction that are expected to be operational by the end of 2022. For more information, visit https://www.apparvest.com/.
About Enhanced Commercial Loans
More commercial loans (GCL) is a lending organization that brings together credit unions and community lenders from across the United States to provide government-backed loans to businesses and initiatives in rural and underserved markets across the United States and its territories. It helps fund key infrastructure services, such as electricity, renewable energy, transportation and fiber optics, as well as schools, hospitals, restaurants, agriculture, hotels and manufacturers. GCL partners with the United States Small Business Administration (SBA) and the United States Department of Agriculture (USDA), which guarantee the loans, to arrange credit on favorable terms. GCL is an affiliate of the Greater Nevada Credit Union (GNCU). www.GreaterLending.com
About Greater Nevada Credit Union
Greater Nevada Credit Union (GNCU) is headquartered in Carson City, Nevada and has been helping Nevadans meet their financial needs since 1949. The credit union serves more than 80,000 consumers and small businesses and has over $1.5 billion dollars of assets. GNCU subsidiaries include Greater Commercial Lending, Greater Nevada Mortgage and Greater Nevada Insurance. GNCU has been consistently recognized as the Best Financial Institution in many of its service areas, as a Top Employer by the Reno/Tahoe Best Places to Work Awards and is the USDA Lender of the Year. GNCU is also the title sponsor of Greater Nevada Field in Reno. For more information, call (800) 421-6674 or visit www.gncu.org.
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “believe”, “may”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “plan”, “predict”, “potential”, “seem”, “seek”, “future”, “prospects”, “may”, “goal”, “target” and similar expressions which predict or indicate future events or trends or which are not statements of historical matters.All statements, other than statements of current or historical facts included in this press release, regarding AppHarvest’s intention regarding the use of loan proceeds, intention to Build AppHarvest re of CEA’s high-tech farms, the anticipated benefits and production at these facilities, including the implementation of a phased approach at each facility, the timing and availability of tomatoes at top national grocery stores and restaurants, the benefits forecasts of the second season harvest, the future financial performance of AppHarvest, as well as the growth and evolution of AppHarvest’s business plans and strategy, the ability to capitalize on business opportunities, future operations , estimated financial position, projected costs, outlook, plans and objectives of management and the expected closing date of the loan agreement are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of AppHarvest’s management and are not predictions of actual performance. These forward-looking statements are provided for informational purposes only and are not intended to be relied upon and should not be relied upon as a guarantee, assurance, prediction or definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from the assumptions. Many real events and circumstances are beyond AppHarvest’s control. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in the Company’s Quarterly Report on Form 10-Q filed with the SEC by AppHarvest on May 3, 2022, under the heading “Factors of risk”, and other documents that AppHarvest has filed, or that AppHarvest will file, with the SEC. If one of these risks materializes, or if our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect AppHarvest’s expectations, plans or forecasts regarding future events and beliefs as of the date of this press release. AppHarvest anticipates that subsequent events and developments will cause its ratings to change. However, while AppHarvest may choose to update these forward-looking statements at some time in the future, AppHarvest specifically disclaims any obligation to do so. These forward-looking statements should not be taken to represent AppHarvest’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed on forward-looking statements.