AeroFarms Emerges Fully Funded from Chapter 11; Molly Montgomery and Stephan Dolezalek Comment
NEWARK, NJ - Just a few months after it was announced that AeroFarms filed for Chapter 11 protection back in early June, new updates have arisen regarding the indoor vertical farming expert. The company recently announced the successful completion of its restructuring process and exit of its business from Chapter 11.
As the supplier prepares for its next era of growth, Molly Montgomery has been appointed Acting Chief Executive Officer and Executive Chairperson of the AeroFarms Board of Directors.
“As we face the mounting challenges of climate change and food insecurity, we need to rethink our global food supply chain,” said Montgomery. “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.”
According to a press release, 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.
This restructuring substantially strengthened AeroFarms’ balance sheet, injecting the necessary funds to reach profitability at the flagship operation in Danville, Virginia, the release continued. To further increase its operational stability, the company has eliminated spending on all projects that do not contribute to the ramp-up of the Danville Farm. In addition, the completion of several automation projects has further increased the throughput and efficiency of the farm. With these strategies in place, AeroFarms targets completing the ramp-up of its Danville operation by the end of 2023.
“This marks a new chapter in the maturity and growth of AeroFarms,” stated Stephan Dolezalek, Managing Partner, GFA. “AeroFarms’ founders established the world’s most advanced vertical farming technology. We have now put in place 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.”
For full details regarding this restructuring, click here.
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