AppHarvest, Inc.(NASDAQ:APPH) shares are crashing on Monday. The company announced its Chapter 11 filing to support a financial and operational transition.
What To Know:
AppHarvest announced that it is pursuing a financial and operational transition in order to reduce its outstanding liabilities. The company stated that operations will continue at the farms, and it has also obtained a commitment from Equilibrium, the company's largest secured creditor, to provide approximately $30 million of debtor-in-possession (DIP) financing to provide the necessary liquidity to support operations.
AppHarvest is also pursuing a transition of its AppHarvest Berea operations to its distribution partner, Mastronardi Produce, or one of its affiliates, in exchange for approximately $3.75 million in additional funding.
"The AppHarvest board of directors and executive leadership evaluated several strategic alternatives to maximize value for all stakeholders prior to the Chapter 11 filing," said AppHarvest CEO Tony Martin.
"The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality."
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APPH Price Action: According to data from Benzinga Pro, APPH shares are trading 66.7% lower at 11 cents at the time of publication.
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