He often sleeps in an RV outside the construction site of its second facility. We've just been selling product for a matter of months. AppHarvest CEO envisions 'couple-decade journey' after going public We always talk about investing for the future because that's really what investing is all about. The greenhouse will cost $97 million and span 60 acres. AppHarvest Founder & CEO on company's public debut via SPAC Offers may be subject to change without notice. Clearly, the younger generation is coming up, sustainability matters, better food matters. I don't want to keep you all day, but before we wrap it up, I did want to talk to you a little bit about ESG, environmental sustainability governance issues. Same platform but with new and improved features. AppHarvest raised $500 million on its balance sheet this year, went public on the Nasdaq, hired 400 people to work in its first facility, and brought its first product, beefsteak tomatoes, to grocery stores including Kroger, Walmart, and Publix. I would not want to be one of those large operators and food today when you see the consumer trends changing as quickly as they are, and we feel very optimistic again about where our growth trajectory is. The history of the world is in many ways the history of technology, and of our reactions to it. WebJonathan Webb grew up in Kentucky and has been committed to developing sustainable projects from Central Appalachia. Despite the off quarter, Webb has much to celebrate. Karrie, on the other hand, has not disclosed her salary or income. It's therefore worth looking at AppHarvest's earnings history below. You can also follow him on Instagram. Webb is a consistent presence at the companys flagship greenhouse in Morehead. Webb: Well, I'll start by saying, anyone that is growing good, clean produce, without harsh chemical pesticides, I try to call them my colleagues, not competitors. I'm Jason Moser, thanks for listening, and we'll see you next week. Now, our job is to make sure it's at around the same price. Because it is cutting-edge technology. If we're going to be working with the largest players in the world, then we need to be in the big leagues, and the only way to do that is to be a publicly traded company. That's how quickly the energy industry shifted. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. He pointed out that, At NASA in the 60s, if you would go visit a facility and you walked up to a janitor and asked, What do you do here? they would say, Im working to put a man on the moon. Thats been the same mentality here Its the collective thats making this thing possible.. Yes, we're using nature for what it's good. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Of course, the future is what really matters. Is there a benefit? AppHarvest Now, his company AppHarvest (the name is a play on both Appalachia and the high-tech nature of what they do), operates a sixty acre greenhouse in Morehead, Kentucky that grows hydroponic tomatoes up to the ceiling. You have illegal chemical pesticides where the EPA cannot track the chemicals being used on these farms in Mexico. A specialist in knee surgery, Webb has performed countless surgeries in elite rugby union teams. Get the latest news and research from AFN & AgFunder in your inbox. But then it's pulling technology in to drive nature from behind. CEOs can get lazy and only worry about the last 90 days; thats easy. I've tried to say, we have a team that looks at this as this is our 30-year journey here at AppHarvest. I'm one of those people growing up I went to public schools here in Kentucky. You have food safety concerns. AppHarvest. 95% of a fruit and vegetable is water. The mission-driven approach Webb has prioritized is the companys main selling point both for investors and potential employees, whom he works to lure away from billion-dollar conglomerates. We use bees to pollinate our plans. This year alone, more than 50 SPACs have been formed in the US, collectively raising around $36.2 billion as of last month. What's the technology that you are looking toward to help you change this space? I did want to know here because I saw this in the earnings release and I just thought it was one of those quotes that stood out to me from Mastronardi, your distributor. Like every Kentuckian, Jonathan grew up knowing of the devastating job losses in the region. Announces Separation of Julie Nelson as Chief Operating Officer Nov 16 Price target decreased to US$5.33 Nov 16 See more updates Shareholder Returns See full shareholder returns Return vs Industry: APPH underperformed the US Food industry which returned Jason Moser: It's Wednesday, May 26th, I'm your host, Jason Moser, and we've got a terrific interview to share with you on this week's Wildcard Wednesday show. Recently, I had the opportunity to chat with Jonathan about the growing opportunity in the AgTech space. Cost basis and return based on previous market day close. We're building these facilities here where we can access markets and get to about three-quarters of the U.S. on a day drive. We're feeding our country with people in Mexico who are making $5 a day. If I'm a grocer and I'm saying U.S.-grown in a controlled environment we solve for all that. Most countries in the Middle East import nearly all of their fruit and vegetables. AppHarvest which raised $28 million in its Series C round in August is launching what it describes as the worlds largest greenhouse later this year, consisting of a 2.76 million square foot facility in Morehead, Kentucky. Also referred to as blank check companies, the mechanism has existed for several years but has received increased attention of late. The same way there won't be one energy company powering the world. Later, in 1993, he relocated to the United Kingdom, where he completed his LLM. We had 22 meetings and had almost 20 yeses. Very few passed on this deal and we eventually had to cancel meetings., Webb describes the SPAC transaction and PIPE financing experience as absolutely phenomenal.. AppHarvest raised over $475 million in a public IPO, but it is not over. Jonathan, thank you so much for taking the time out of your busy schedule to see just more about AppHarvest to talk about all the stuff that you're trying to accomplish there. The deal is slated to bring in $475 million in gross proceeds for Kentucky-based AppHarvest, including a private investment in public equity (PIPE) transaction As investors were looking for the biggest market opportunities we can find, market opportunities that are growing. Jonathan Webb poses in front of his giant greenhouse, When you look at human civilization, what do you need? No one else in America is doing something at that scale. Growing up in Appalachia, Jonathan Webb watched the slow decline of the coal industry firsthand. For example, we use integrated pest management, good pest to kill bad pest. Sustainable investor Equilibrium Originally from Kentucky, Webb is dedicated to sustainable projects in Central Appalachia. Investors look at that, Peter Halt, AppHarvests newly appointed chief financial officer, told, Step aside, alt-protein: Bioplastics are the real agrifoodtech opportunity, The rise of the reused machines: Germanys E-Farm raises $5.3m Series A. No, weve made some mistakes. It's the workforce that we're going to use to grow the organization. You have labor concerns. Webb founded AppHarvest in 2017, and the company was certified as a B Corp two years later. This is still a very new space though. "We have the capital we need and we're focused on building and operating, and just head down on execution," Webb said. FORTUNE may receive compensation for some links to products and services on this website. What makes AppHarvest so unique? Jason Moser has no position in any of the stocks mentioned. WebThe combined company will be led by Jonathan Webb, AppHarvests Founder & Chief Executive Officer. Consumers are pushing back. Which is important, because AppHarvest employs well over 300 people in its Morehead facility alone. Use our online form to book an appointment with Dr. Webb. In our first month or two, we're already at all those outlets. You said that we're a technology company working to disrupt agriculture. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. My background was a part of building some of the largest solar projects in the U.S. David Lee, who joined us from Impossible Foods, joined impossible foods five years ago as their CFO and COO raised them nearly over $1 billion in the last five years and turned them into what was a boutique idea, into a mass-market product on store shelves. AppHarvest We've had 8,000 people apply to work at the company and we've hired 500 people in the middle of a global pandemic. Invest better with The Motley Fool. US controlled environment agriculture (CEA) startup AppHarvest has announced a merger with NASDAQ-listed special purpose acquisition company (SPAC) Novus Capital, enabling it to go public. He has over 100 civil and criminal jury trials and has represented clients in counties across Georgia. That to me, was in a nutshell what it's all about. You look at California and the Southwest of the U.S., drying up, drought-stricken, flagged by wildfires. To make the world smarter, happier, and richer. Moser: That's going to do it for us this week, folks. He is also becoming more involved with green shipping and is a council member of the London Shipping Law Centre. Then by the end of the year in 2022, we'll have five facilities operating. This is the direction in which the world is going, so companies better get on board [laughs] or get out of the way. Jonathan Webb, CEO, AppHarvest: AgTech Farming for Our The greenhouse, completed in 2020, yields up to 30 times the crops a traditional farm would, Webb said. By the end of next year, well quadruple that. Opinions expressed by Forbes Contributors are their own. I could be in a penthouse in New York City, managing AppHarvest from the 32nd floor of some high-rise. Were investing heavily in our future, so were spending heavily today, he said. AppHarvest is a unique and compelling investment opportunity that is redefining American agriculture by improving access for all to fresh non-GMO produce, growing more with fewer resources, and creating an agtech hub from within Appalachia, Novus chairman Bob Laikin said in a statement. I fundamentally do not think its a tradeoff. Jonathan Webb, CEO, AppHarvest: AgTech Farming for Our Jonathan Webb - Founder & CEO @ AppHarvest Jonathan was named one the Top 30 Most Influential Lawyers in Washingtonians 2018 list upon graduation. We pay every employee at AppHarvest a living wage. AppHarvest is recovering from a challenging third quarter, in which it reported a net loss of over $17 million; Webb attributes it to hyper-growth. Most of those employees were hired in the midst of 2020, something that Webb considers a testament to the trust his community has placed in AppHarvest. For us, this year, it's less about the dollars and more about hitting our targets and we were able to hit our Q1 guidance and ramp up our facility to, later on, this year by Q4, we'll be at full capacity in Q3 and Q4, selling tomatoes out of this facility in more Kentucky. I made the point at one point in regard to AppHarvest. Were building robotics and software that will ultimately be able to service the entire global agriculture industry. This year alone, more than 50 SPACs have been formed in the US, collectively raising. Webb is a consultant orthopaedic physician and a board member of World Rugby. To learn more about AppHarvest, you can visit appharvest.com. You came public a lot sooner or probably that you would have had the opportunity to even 10 years ago. The system it uses reportedly reduces water usage by 90% compared to traditional open-field agriculture, while also eliminating runoff. AppHarvest AppHarvest: Transforming The Future Of Agtech, And Maybe The Jonathan Webb grew up in Kentucky and has been committed to developing But I think there are a lot of benefits that come with that. Let's let the consumer of our product also be the buyer in our company. AppHarvest, which went public in February in an IPO that brought it $475 million in gross proceeds, is an ambitious venture.