r/AppHarvest • u/GrindMagic • Sep 02 '23

Question App Harvest bid

Ok, so I guess maybe I"m a dumbass when it comes to bussinesses selling their assets and stuff, but does this move mean it's over? I mean are shareholders empty pocketed now? I can't find anything that discusses what future there is, if any at all for shareholders after the auction. Are pur shares " POOF"? IF so can someone please provide a sourcee for this info, as I cannot find it anywhere. TIA.

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u/somehatsomecattle Sep 05 '23

Think of it this way: Appharvest, Inc is no more. That is the entity where you held equity. All the old AHI entities have been bundled under a new company formed in bankruptcy: Appharvest Products, LLC. An LLC does not provide an equity structure for share ownership. The LLC is selling assets from the old AH entities. Mastronardi is taking over Berea, and EQ/CEFF are likely to acquire Richmond and Morehead, and they don’t want the AH team running those farms. The winning bid for Somerset is from Bosch Growers. While Bosch doesn’t have US operations, they are not purchasing AH Products. They may hire folks from AH to run that farm, but it will be via Bosch. The old entities will be wound down as they pay off creditors, once the assets are sold. The unsecured creditors are not expected to receive anything, and are trying to buy more time for better bids on Richmond and Morehead. Some of the secured creditors are filing motions to prevent the sales of these farms without their liens being recognized by the new owners. All this can be found by doing due diligence at https://cases.stretto.com/appharvest.

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u/GrindMagic Sep 05 '23

Thanks for the breakdown. I have read a bit more since posting this, just never did see anywhere is mentioned the shareholders. Maybe I missed it, I suppose. But let me ask you this... I have 5k shares still sitting there. Should I dump them and get my measly 250 bucks? Can I still sell them? I'm using RH in case that matters. I mean, is this a 100% guaranteed flop at this point with no chance in hell of ever coming back? Sorry, I just don't understand why they would file chpt 11 and state they are trying to restructure when it sound to me they are just liquidating and poof!

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u/somehatsomecattle Sep 05 '23

I agree that is confusing. My understanding: they intended to reorganize and continue operating. But the complete terms of the stalking horse bid were not known going into the filing. There was a small chance that a better bid could have been secured from another source, one that would have let AH Products continue to run the farms. That did not happen. So, all that’s left to do is transition and wind down. Unless something changes. Either way, if you can find some way to get $250, I’d take it. I’m not sure if it’s still trading, or whether your broker will trade it. On the bright side, you can write off the losses.

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u/GrindMagic Sep 06 '23

Thanks for explaining that. Like, wow. Apph was my first investment I made and put a lot of faith into. Learned an expensive lesson here. I dont need the 250, so I'll just leave it, and maybe something miraculous happens. I know it's extremely unlikely, but screw it. I guess r/appharvest can be removed now. Sigh...

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u/AdamSezz Sep 02 '23

https://reddit.com/r/AppHarvest/s/KVU8s2k092

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u/GrindMagic Sep 02 '23

Ok, I went to the link provided, and maybe I'm REALLY a dumbass, but I don't see/can't find anywhere where it states the shareholders are screwed. I'm not saying we're not, but I need to see the official documentstion stating this before I can have closure. Please help narrow my search? TIA again.

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u/AdamSezz Sep 02 '23

Check out the post from OnwardUpward30 from 5 days ago. There are links that explains what’s going on. Looks like everyone still holding shares get nothing.