Another one of AppHarvest Inc.'s creditors wants its money back.
Rabo AgriFinance LLC, a Delaware limited liability company, is seeking the immediate repayment of a $47.2 million loan, according to a U.S. Securities and Exchange Commission filing. The lender alleges AppHarvest has defaulted on its credit agreement relating to nonpayment of certain principal and interest amounts due on July 3.
As Louisville Business First previously reported, Morehead, Kentucky-based AppHarvest (Nasdaq: APPH) disclosed last month that Equilibrium Sustainable Foods LLC is seeking the immediate repayment of a $66.7 million loan that was used to construct its 60-acre tomato farm in Richmond, Kentucky. At the time, the company said that claim could trigger a $69.4 million loan from Rabo on that same facility.
But, this latest SEC filing says that following the alleged default, Rabo can pursue the foreclosure of AppHarvest's flagship Morehead farm. It could also pursue the court-ordered appointment of a receiver to take possession of the Morehead property. And/or it could pursue a lawsuit against AppHarvest to recover the debt, the filing said.
"The Rabo AgriFinance demand is due to a cross-default provision automatically triggered by allegations of default from other lenders, which AppHarvest contests," AppHarvest said in a statement. "We are working with Rabo to come to a resolution and will pursue a defense to any enforcement on their part that disrupts our business."
The news of this loan dispute comes less than a week after AppHarvest named Tony Martin, its former COO, as its chief executive officer. Jonathan Webb, the company's founder and former CEO, is now chief strategy officer.
Last week, we also reported AppHarvest is at odds with its exclusive distributor, Mastronadi Produce, over the lease on its 15-acre Berea, Kentucky, farm. Mastronardi claims AppHarvest is in violation of the lease with respect to minimum production volumes, and it demands AppHarvest vacate the property.
In addition to its Morehead, Richmond and Berea facilities, AppHarvest also has a farm in Somerset, Kentucky. It reported net sales of $13 million and a net loss of $33.6 million during the first quarter of 2023.
"AppHarvest is diligently working to restructure the company in an effort to make it profitable and to preserve value and jobs. The company has seen significant increases in production volume and quality under the leadership of Tony Martin who recently was named CEO," the company said in a statement. "AppHarvest is working closely with multiple partners to secure financing and in the meantime is continuing business as usual — including shipping product from each of the four farms."
AppHarvest's stock has been on the decline since last week, dropping from about 44 cents per share to about 36 cents per share. To continue to be listed on the Nasdaq stock exchange, companies must maintain a minimum share price of $1.
