aerofarms
Image credit: AeroFarms

Brief: US vertical farming group AeroFarms joins unicorn club, strikes SPAC deal to go public

March 26, 2021

  • US vertical farming startup AeroFarms has agreed a merger with Spring Valley Acquisition Corp, a special purpose acquisition company (SPAC). The deal will see AeroFarms go public on New York’s NASDAQ exchange under the symbol ‘ARFM’.
  • The transaction could allow Newark-based AeroFarms to raise as much as $357 million in gross proceeds, including Spring Valley’s $232 million cash reserves plus $125 million to be secured via a private investment in public equity (PIPE) deal from institutional investors, AeroFarms executives, and Spring Valley sponsor Pearl Energy Investments.
  • The merger is expected to close in Q2 2021 with the combined company estimated to be valued at $1.2 billion.

Why it matters:

SPACs were the investment story of 2020, with the annual number of SPAC IPOs hitting 248 (from just one in 2009) and over $83 billion invested compared to $13.6 billion in 2019. In February 2021 alone, a record $109 billion closed across 50 SPAC transactions globally, according to new data cited in the Financial Times.

What the SPAC?! A brief explainer on the next exit tool for agrifoodtech investors – read it here

Last month, US indoor farming startup AppHarvest went public at a valuation of over $1 billion after its $475 million acquisition by SPAC Novus Capital Corp.

US real estate investment trust Alexandria Real Estate Equities recently launched its own agrifoodtech-focussed SPAC, while The Production Board — a food and biotech venture builder headed by The Climate Corporation co-founder David Friedberg — has also established a SPAC.

AeroFarms is a certified B Corporation and sells its Dream Greens brand of vertically-grown vegetables through retailers including Whole Foods, ShopRite, Amazon Fresh, and FreshDirect.

Share on email
Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on whatsapp
Share on skype

AgFunder Newsletters & Research

Get the latest news in your inbox. Weekly.

* indicates required

Follow us:

Advertisement
Advertisement
Join Newsletter