AeroFarms, Inc. completed restructuring processes and exits from Chapter 11 (Case No. 23-10737), plus appoints Molly Montgomery as the new CEO.
AeroFarms' emergence from Chapter 11 includes the approval from the bankruptcy court for its Asset Purchase Agreement (APA) with a group of existing investors led by Grosvenor Food & AgTech (GFA), including an expanded relationship with Doha Venture Capital.
In short: what does it mean?
This move strengthens AeroFarms' financial position and allows them to focus on their flagship farm in Danville, Virginia, which has been experiencing increasing demand and improved efficiency. They aim to achieve profitability at this farm by the end of 2023.
Newly appointed CEO Molly Montgomery said, "AeroFarms is a testament to the innovative thinking required to deliver highly nutritious food in a more sustainable and cost-efficient manner. The Danville Farm is an impressive operation, leveraging proprietary technology to deliver a fresh product that is less vulnerable to climate-related threats. I am looking forward to working with Guy Blanchard, the newly named AeroFarms President, and the rest of the AeroFarms team to complete the ramp-up of the Danville facility and to deliver a profitable operation that will enable future growth."
All eyes on Danville
This restructuring substantially strengthens AeroFarms' balance sheet, injecting the necessary funds to reach profitability at the flagship operation in Danville, Virginia. The company has eliminated spending on all projects that do not contribute to the ramp-up of the Danville Farm, thereby accelerating its path to profitability.
Since the Danville Farm began shipping products to customers in September 2022, revenues have continuously climbed to meet growing demand. More recently, the completion of several automation projects has further increased the throughput and efficiency of the farm. The company targets completing the ramp-up of its Danville operation by the end of 2023 and reaching profitability at the farm soon thereafter.
"This marks a new chapter in the maturity and growth of AeroFarms. AeroFarms' founders established the world's most advanced vertical farming technology. We have now put in place the changes needed to deliver on their vision. As an investor dedicated to creating a more sustainable global food supply chain, we see vertical farms as a critical part of the solution and are now focused on efficiently scaling our operations to deliver a market-leading product through a profitable business model," stated Stephan Dolezalek, Managing Partner, Grosvenor Food & AgTech (GFA).