(RTTNews) - Shares of Novus Capital Corp. (NOVS) are gaining nearly 30% on Tuesday morning after AppHarvest, a developer and operator of indoor farms, announced it would go public through a merger with Novus Capital, a special purpose acquisition company.
NOVS is currently trading at $12.95, up $2.85 or 28.25%, on the Nasdaq.
AppHarvest and Novus Capital have entered a definitive agreement for a business combination that would result in AppHarvest becoming a public company. Upon closing of the transaction, the combined company will be named AppHarvest and is expected to remain listed on Nasdaq under a new ticker symbol.
The combined company will be led by Jonathan Webb, AppHarvest's Founder and Chief Executive Officer.
The transaction will provide $475 million in gross proceeds to the company, including $375 million fully committed common stock PIPE at $10.00 per share. The deal would give AppHarvest a market value of around $1 billion.
"We are excited to transition AppHarvest to a public company and raise nearly a half a billion dollars in the process," said AppHarvest CEO Jonathan Webb. "This will allow us to pursue our mission of transforming agriculture. A mission that's become even more important since the global pandemic exposed how a rapidly increasing reliance on imports jeopardizes food security."
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