Almost two years post-bankruptcy, US vertical-farming leader AeroFarms has secured funding to build its second facility.
AeroFarms specializes in supplying microgreens cultivated in controlled indoor environments to the retail sector. In a recent statement, the company announced it has refinanced its debt to bolster ongoing operations at its Danville facility in Virginia.
The New Jersey-based firm also disclosed that it has successfully raised new equity financing to support pre-construction activities for its new farm, the location of which remains undisclosed.
Molly Montgomery joined AeroFarms as Executive Chair and CEO following the company’s emergence from bankruptcy in September 2023. The business entered Chapter 11 in June 2023, citing “significant industry and capital-market headwinds” as challenges.
The capital-intensive vertical-farming sector has faced numerous challenges regarding fundraising and scalability, with many companies struggling to achieve profitability. Unfortunately, several participants have exited the market.
Prior to stepping into her role at AeroFarms, Montgomery was and remains a partner at agri-food investor Grosvenor Food & AgTech (GFA), one of AeroFarms’ existing investors, alongside Doha Venture Capital. Both firms participated in the “asset purchase agreement” during the bankruptcy resolution.
GFA, along with Ingka Investments, Cibus Capital, ACEG, and others, has now provided the new equity financing.
“We have recently demonstrated that vertical farming can indeed be sustainable, profitable, and produce fresh greens at scale,” remarked Montgomery in the statement.
“Our vision is to provide local food production of nutritious microgreens to regions around the world, while preserving natural resources.”
AeroFarms utilized an asset-based loan from Siguler Guff to completely repay a previous debt facility from Horizon Technology Finance.
The new loan offers a “more favorable interest rate,” interest-only terms, and a carve-out for eligible equipment financing, the company stated.
Montgomery expressed her “gratitude” to the financial partners who “provided financing to support our operation in Danville and commencement of pre-construction activities for expansion to a second farm.”
Meanwhile, Stephan Dolezalek, a managing partner of GFA, commented: “We believe AeroFarms can play a significant role in the global fresh food supply chain by providing nutritious greens at scale to local regions around the world.”
“AeroFarms has now proven the ability to deliver the transformative benefits of vertical farming through a viable, profitable business.”
