SPAC $NOVS merging with AppHarvest (to be $APPH)

Looks very.. curious (cough)..

Short thread:

Its a "high-tech" greenhouse/hydroponic grow operation.

They just completed construction and planted their first harvest in their first building in October 2020 (2 months ago, yes) Image
They call themselves a "high-tech greenhouse company"... Image
.. but all of their technology listed is outsourced from a host of companies.. ImageImage
Can you spot any new automation/technology? Humans planting, humans caring for the plants, humans harvesting. Its farming, indoors. Image
The SPAC deal values them at a $1B market cap or a ~570M EV as the PIPE investors are bringing in most of the cash. SPAC holders only get ~10% of the company.

The SPAC is now at $16 representing a 1.13B EV or 1.6B market cap. Image
They anticipate the first year of (vine plant) production will generate 21M in revenue. Keep in mind, this is all assuming their yields are as expected as this is the first crop!

So the company is trading at 55x EV/NTM sales or 19x est 2022 sales. Image
I'll leave the other forecasts here. Apparently 2023 to 2024 will be a big year, +110M in revenue will yield +55M EBITDA.. Image
I'm passing on this one. I don't see any proprietary tech or moat. Legacy growers would buy the tech that they are buying if it works out, no?

I love the idea of bringing crop diversity back to the US, so I would be a buyer of the product if it works out. Just not the shares.
Should mention, revenue expected to triple in 2022 as they are building two new facilities. Its farming, so yield is a 1 to 1 relationship to space/land. They need to build 9 (NINE!) of these facilities in the next 4 years to meet projections. ImageImage

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Plant

Plant Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @plantmath1

21 Dec 20
I have started a position in $SSPK.
SPAC - $SSPK Silver Spike Acquisition Comp

They are merging with WM Holdings, Inc who owns Weedmaps. Founded in 2008. Lead by CEO Chris Beals. Former life-sciences attorney (important - will come in later).
Basic Description:

The business is a two-sided marketplace which serves customers and sellers of marijuana products.

Who are they?
On the consumer side, which is a marketplace for standardized marijuana products.

Weed Maps is the world’s largest base of cannabis users with over 10M MAUs, 90% of which are cannabis users, and a stunning 70% are DAILY users.
Read 30 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!