Soon You Can Buy Stock In Newark's Cutting-Edge 'Indoor Farm'

NEWARK, NJ — A cutting-edge “indoor vertical farm” company with a headquarters in Newark is going public.

Recently, Aerofarms announced that it will become a publicly traded company on the Nasdaq through an agreement and plan of merger with Spring Valley Acquisition Corp., a special purpose acquisition company.

Using an intricate system of closed-loop aeroponics, the company grows up to two million pounds of fresh, leafy greens at its flagship facility in the city’s Ironbound neighborhood, which it calls the “world’s largest” indoor vertical farm.

Since launching in 2004, the company has also souped up its distribution efforts. AeroFarms products can now be found at major retailers like ShopRite, Whole Foods, FreshDirect and AmazonFresh, and are used by clients such as renowned chef Marcus Samuelsson at his Marcus B&P restaurant in Newark.

• See related article: 'World's Largest Indoor Vertical Farm' Keeps Growing In Newark

According to a company news release, it is poised to expand retail distribution and market penetration, construct additional farms, introduce future generations of proprietary farming technology, and enter new product categories.

All AeroFarms stockholders will roll 100 percent of their equity holdings into the new public company, spokespeople said.

The company added:

“The transaction is expected to provide up to $357 million in gross proceeds to AeroFarms – comprised of Spring Valley’s $232 million of cash held in trust, assuming no redemptions, and a $125 million fully committed PIPE at $10 per share, including investments from leading institutional investors, AeroFarms insiders, and Pearl Energy Investments, the sponsor of Spring Valley.”

The transaction has been unanimously approved by the board of directors of Spring Valley, as well as the board of directors of AeroFarms, and is subject to satisfaction of closing conditions, including the approval of the shareholders of Spring Valley.

Following the expected second quarter 2021 transaction close, the combined company is expected to have an estimated pro forma equity value of approximately $1.2 billion, spokespeople said. It will remain listed on the Nasdaq under the new ticker symbol “ARFM.”

“Our business is at an inflection point where we will scale up our proven operational framework and begin our expansion plans in earnest,” said Aerofarms co-founder and CEO David Rosenberg, who will lead the new company.

“With the support of Spring Valley, we not only have the capital in place to execute our plan, but also a sponsor who shares the same philosophies to make a positive impact on the world, while serving the interests of our shareholders,” Rosenberg said.

Send local news tips and correction requests to eric.kiefer@patch.com

Don’t forget to visit the Patch Newark Facebook page. Learn more about posting announcements or events to your local Patch site. Sign up for Patch email newsletters.