(RTTNews) – Shares of Novus Capital Corp. (NOVS) are gaining nearly 30% on Tuesday morning after AppHarvest, a developer and operator of indoor farms, announced it would go public through a merger with Novus Capital, a special purpose acquisition company.
NOVS is currently trading at $12.95, up $2.85 or 28.25%, on the Nasdaq.
AppHarvest and Novus Capital have entered a definitive agreement for a business combination that would result in AppHarvest becoming a public company. Upon closing of the transaction, the combined company will be named AppHarvest and is expected to remain listed on Nasdaq under a new ticker symbol.
The combined company will be led by Jonathan Webb, AppHarvest’s Founder and Chief Executive Officer.
The transaction will provide $475 million in gross proceeds to the company, including $375 million fully committed common stock PIPE at $10.00 per share. The deal would give AppHarvest a market value of around $1 billion.
“We are excited to transition AppHarvest to a public company and raise nearly a half a billion dollars in the process,” said AppHarvest CEO Jonathan Webb. “This will allow us to pursue our mission of transforming agriculture. A mission that’s become even more important since the global pandemic exposed how a rapidly increasing reliance on imports jeopardizes food security.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.