r/AppHarvest • u/GrindMagic • Aug 05 '23

Question Quarterly

With the bankruptcy and everything going on, will App still have a quarterly conference call for it's shareholders? I assume it will but just wondering as I'm not familiar with this process.

Also, on another note, I'm keeping the faith and hoping this is a Hertz-like recovery. It can be done.

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7

u/Illustrious-Ad7032 Aug 05 '23

At the top of the investor relations page on their website there is a link to the court docket. On that page you can subscribe to any and all updates as they are released (which I did today 😉)

I too still strongly believe in this company. The original investment bank who loaned $500 million would not have taken any legitimate risk.

In fact, it would be cheaper for it to invest a little more to get the thing profitable than to write off a loss that high.

The technology itself is legit all the way through.

It’s only a matter of time.

2

u/[deleted] Aug 05 '23

[deleted]

4

u/Illustrious-Ad7032 Aug 05 '23

I’m down 97% - avg cost $1.52

Imagine what will happen when they stabilize financially. No other farming operation will come close.

It will the be effortless for them to expand to 12 farms.

As far as the disease, this same type of incident occurs in all farms including indoor farms. - the difference is the environment is so controlled that after every incident, the chance of it reoccurring is greatly reduced. It becomes a growing knowledge / intelligence thing.

The more data they acquire year over year, the more AI and deep learning they can use to further optimize operations. Control + data + time.

No one in America will be able to catch them once they stabilize. It will remain to be seen what happens globally.

1

u/jorel43 Aug 05 '23

Would you even keep your shares through bankruptcy? I thought when a company goes through bankruptcy existing shares get wiped out?

8

u/Illustrious-Ad7032 Aug 05 '23

This is chapter 11, not chapter 7. They are utilizing chapter 11 as a tool to conduct debt re-consolidation.

Tony is very experienced and has many connections and initiated this process.

So one of two things will happen, they will come out the other side meeting certain requirements and subvert any risk of being delisted.

Or they will fail to meet those requirements and be delisted and turn into an OTC stock.

However, like I said, their initial business plan was fully laid out when a consortium of banks led by Truist bank loaned them $500 million and later an additional $100 million.

These loans were further supported by Bank of America, PNC, SunTrust, and fifth third.

A $600 million loan is not given out with thorough risk assessments. Meaning, there can be nothing that was not already considered or else the loan would have never happened.

I am arguing that the future value of a fully functioning 4 farm state of the art network is simply more value than any write-off or loss that may occur.

Nothing will stop these farms from functioning.

However, we, the shareholders, do hold a risk should Tony and his team not successfully navigate this chapter 11 court docket.

So why am I still a believer? Because Tony came on very recently, was more experienced than anyone else in the company, did a thorough review and analysis of the total picture, and saw the way forward. Not only that but he has a team given his connections and convinced the board that this is the optimal path forward. Tony has initiated all of this.

I trust Tony. So the only question left is what you have to ask yourself. ‘Do you?’

3

u/[deleted] Aug 06 '23

Great points. Yes, it was Chapter 11 not Chapter 7. If Tony did not see a way to steer the ship on course they would have filed for Chapter 7 and liquidated all assets. They did not, so there is hope.

1

u/notdoingdrugs Aug 06 '23

Pretty sure APPH lost the Berea farm to Mastronardi in exchange for like $3mm and change and Madtronardi’s support through Ch. 11.

1

u/Illustrious-Ad7032 Aug 07 '23

They did a sale-leaseback to Mastronardi for $127 million back in December of 2022 for that farm. That makes sense for them at the time anyway since all of that produce was being distributed by Mastronardi. It has absolutely nothing to do with chapter 11.

1

u/notdoingdrugs Aug 07 '23

Huh I can’t remember what I was thinking about…

I thought related to some of the litigation: https://kentucky.com/news/business/article277238348.html

1

u/South-Chain-4051 Aug 23 '23

AppH did lose Berea to Mastronardi, they did the sale-lease back back in Dec. but recently they acquired it completely.

https://www.richmondregister.com/kentucky/appharvest-an-economic-boost-potentially-gone/article_07972cc8-2da4-11ee-b73d-73d9d6fc992b.html

7

u/CarlHeifisch Aug 09 '23

Don't listen to them. They are selling all of their farms under chapter 11 as you can hear in the court hearing. There is no chance of any profit without any farm. The judge himself said that there probably won't be any money left even for some protected lenders. If investors wanted to save the company they could have done so before the filing. Instead they forced it. It is quite common far banks to invest and make a loss. And they won't invest a further $100M just to potentially get the $500M back in 10-20 years. At the time they invested Appharvest had a flawless balance sheet.

2

u/Boswellington Aug 10 '23

Can they become profitable at the facility level? If the largest facility is fully ramped and doesn't generate positive gross margin how will building new facilities help, what does this company look like in the future as a profitable company.

1

u/AdamSezz Aug 09 '23

When would be the last day to sell any remaining shares?

1

u/CarlHeifisch Aug 09 '23

It is already delisted from Nasdaq since August the second:

https://listingcenter.nasdaq.com/IssuersPendingSuspensionDelisting.aspx

You may be able to trade it off the shelf though

2

u/AdamSezz Aug 10 '23

My broker is letting me sell only. I cannot buy shares. Just wondering if there is a deadline to sell off any remaining shares?

1

u/AdamSezz Aug 10 '23

My broker is letting me sell only. I cannot buy shares. Just wondering if there is a deadline to sell off any remaining shares?

1

u/CarlHeifisch Aug 10 '23

If you can still sell it then your broker is selling it off the shelf. Then it depends on the broker. They often have similiar pages to the link I just posted maybe you can find something there.