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Local Bounti and AppHarvest Plan Reverse Stock Splits; Skytree Raises $6M in Seed Funding
Major moves in the AgTech industry: Reverse stock splits for market compliance and funding boosts for sustainable technology development.
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Good morning readers, here is this week’s roundup from the world of indoor vertical farming:
Local Bounti Corporation recently announced a 1-to-13 ratio reverse stock split, approved by its board and shareholders. Meanwhile, AppHarvest shareholders approved changes enabling a potential reverse stock split of common shares.
Climate-tech startup Skytree secured $6M in seed funding in the tech industry and aims to expand its Direct Air Capture technology to capture more CO2 by 2030.
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This Week in Indoor Farming
Local Bounti Corporation LOCL 2.73%↑ disclosed on June 14, 2023, that it would implement a reverse stock split at a 1-to-13 ratio. This action, approved by the Board and shareholders, was set into motion on June 15, 2023. It involves converting every 13 common stock shares into one share, with the expectation of trading on a split-adjusted basis under the unaltered symbol "LOCL" on the New York Stock Exchange (NYSE).
Shareholders who, due to the reverse stock split, would be in line to receive fractional shares will instead be given a cash payment calculated on the June 14, 2023, NYSE closing sales price per share. Although this financial strategy does not modify the authorized number of shares or the common stock's par value, it will necessitate changes in the exercise prices and the number of shares associated with the Company’s equity awards and warrants.
Recently, AppHarvest APPH -9.66%↓ shareholders approved a set of modifications to the company's Certificate of Incorporation. This facilitates the Board's ability to execute a reverse stock split of the firm’s common shares. The agreed-upon ratio for this reverse split varies from one-for-ten (1:10) to one-for-twenty (1:20). The results of the voting for these modifications were distributed in the following way: 89,805,724 votes supported the amendments, 7,186,956 votes opposed them, and 716,134 votes were abstentions.
Amsterdam-based Skytree, an early-stage climate tech developer, has announced it secured $6M (approximately €5.55M) in seed funding on Tuesday, June 13. In addition to the funding, the appointment of Mark Henderson as the company's global Chief Commercial Officer and President of North America was also revealed. The investment round was led by Horticoop, a cooperative fund supporting horticulture-related businesses, and Yield Lab Europe, an agtech impact VC fund.
Skytree, established in 2014 by Max Beaumont, uses direct air capture (DAC) technology to capture CO2 from the environment, facilitating a shift from fossil fuel-dependent industries and providing local, on-site CO2 generation across multiple sectors. The funding is slated to accelerate the usage of their DAC technology, aiming to capture 10 Mt of CO2 by 2030, relieving businesses from supply chain constraints and price volatility associated with CO2. Skytree has registered 17 patents in 5 patent families across the US, Europe, and China as a testament to its innovation. The company now offers pre-orders for its vertical farm units that generate an independent CO2 supply.