Spring Valley Acquisition shareholders voted in favor to merge with AeroFarms, however, the SPAC said due to redemptions it has not met the minimum cash conditions to closing the deal.
Spring Valley and AeroFarms are pursuing additional capital sources, which must be agreeable to both parties, the SPAC said in a press release. It is expected that existing AeroFarms insiders would represent a significant portion of the additional capital and that the investment into the combined company would be on the same terms as provided to existing PIPE investors.
If the parties agree to close, the merger completion is anticipated to take place by Sept. 24.
Following closing, the combined company’s stock and warrants would trade on the Nasdaq under ARFM and ARFMW. The SPAC said there is no assurance that additional capital will be raised or that the deal will close.
AeroFarms is a sustainable indoor agriculture company based in Newark, New Jersey.
Spring Valley disclosed last week that there were enough votes to approve the merger, but noted that closing conditions had not been satisfied.
Announced in March, the original terms of the deal called for AeroFarms to receive $357 million, including a $125 million PIPE. Spring Valley raised $230 million in a November IPO.
Neither the press release nor the SPAC’s subsequent 8-K filing included redemption figures, although cash-ins must have been substantial for the SPAC to fall short of the minimum requirement. Read more.
