Equilibrium Sustainable Foods LLC is seeking the immediate repayment of a $66.7 million loan that was used to construct AppHarvest's 60-acre tomato farm in Richmond, Kentucky. AppHarvest had about $50 million in cash on hand as of March 31 and was actively exploring other financing opportunities, according to its latest earnings report.
AppHarvest (Nasdaq: APPH) was notified of an alleged loan default in early May, according to a filing with the U.S. Securities and Exchange Commission. The lender alleged certain defaults relating to increases in the construction budget and delays in construction made without the lender's approval, the existence of a mechanic's lien, and alleged construction deficiencies, the filing states.
"We believe that we are in full compliance with the loan terms. We are working to resolve the issue directly with Equilibrium, which we believe is based on their misunderstanding of the facts", the team with AppHarvest shares.
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