"High-tech farmer AppHarvest is running out of money"

Kentucky-based controlled environmental agriculture company AppHarvest has warned in its latest financial report that it only has enough capital to continue its operations into the first quarter of 2023.

According to its quarterly report filed on November 7, there is “substantial doubt” about the company’s ability to continue unless it can raise additional outside capital.

"As of September 30, 2022, we had $36.2 million of cash on hand and an accumulated deficit of $270.6 million. In October 2022, we entered into a $30.0 million note and loan agreement with Mastronardi Produce-USA, Inc. (“Mastronardi USA”) and received $15.0 million upon execution. In November 2022, we initiated a third restructuring plan to further reduce operating costs and our losses. Despite these actions, management believes there is substantial doubt about our ability to continue as a going concern and absent additional sources of financing. We expect that our existing cash and cash equivalents will only allow us to continue our planned operations into the first quarter of 2023."

According to a story in the Kentucky Herald-Leader, the company needs $85 to $95 million in cash to fund operations for the next 12 months. That’s a lot of new capital in a market where raising new money has become increasingly difficult.

AppHarvest is looking at a few strategic options, including selling Berea farm to its primary distribution partner  Mastronardi Produce Limited (the same company it borrowed funding from to launch the first 15 aces this past month). They are also talking with potential acquirers, according to AppHarvest CEO Jonathan Webb.

Read the complete article at www.thespoon.tech.

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