In the Indoor Ag sector, May 10th marks a significant date as three key companies have scheduled their first quarter earning results announcements. First, the indoor farming company, Local Bounti, will share its Q1 performance, providing an update on its financial status and business progress. Second, AppHarvest, another enterprise operating in the indoor farming industry, will release its quarterly financial results on the same day. Finally, Hydrofarm Holdings, a hydroponics equipment supplier, will also make its first-quarter financials public. This simultaneous disclosure of financial information from these three companies will provide a comprehensive view of the current state of the publicly-traded indoor ag companies.
During the first quarter, Local Bounti received a notice from NYSE’s qualification department stating that their stock has been trading under $1.00 for over 30 consecutive trading days, which may result in delisting. To prevent this, the company must exceed its estimated financial results and hope for an investor rally to increase its share price. On the bright side, Local Bounti amended their credit facility with Cargill and secured up to $145M in additional capital to finance the construction of their facilities. According to the company’s CFO, this will give them enough runway to further their developments.
AppHarvest, a company based in Morehead, Kentucky, has successfully started production at its Richmond facility and has shipped its first batch of Tomatoes, Strawberries, and Salad Greens. However, there is a risk of the company receiving a delisting notice from the NASDAQ qualification department due to their stock price being below $1.00 per share for almost 30 consecutive days.
However, HydroFarm Holding Group is unlikely to be delisted because its share price is still above $1.00 per share. Nevertheless, if they report negative results, it could cause their stock price to decline.
Further information will be provided in the earning dates in due course.
Image provided by AppHarvest
