A merger between Newark-based vertical farming company AeroFarms and Spring Valley Acquisition Corp. of Dallas, Texas has hit a potential stumbling block because the parties lack the financing needed for the agreement to go through.
Shareholders in both companies approved the proposed merger on Aug. 30, but “the minimum cash requirement” for the agreement and merger plan “has not been satisfied,” reads an Aug. 30 statement.
“Spring Valley and AeroFarms are pursuing additional capital sources, which must be agreeable to both Spring Valley and AeroFarms,” the statement continues.
The goal is for the deal to close by Sept. 24 – just over three weeks from now – “if the parties agree to close.”
The two announced the merger late in March, with $357 million in gross proceeds set for AeroFarms, including $232 million of cash and $125 million of shares.
Company executives expect that the added funds would come from existing AeroFarms shareholders and private investments.
“Our business is at an inflection point where we will scale up our proven operational framework and begin our expansion plans in earnest,” reads a prepared statement issued in March from AeroFarms Chief Executive Officer David Rosenberg. “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 [environmental, social and corporate governance] philosophies to make a positive impact on the world.”d