Company Name: AppHarvest, Inc.
Securities: APPH (NASDAQ)
Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of AppHarvest, Inc. common stock (NASDAQ: APPH).
On February 1, 2021, AppHarvest (which at the time was a private company) merged into Novus Capital Corporation (NASDAQ: NOVS), a special purpose acquisition company. Pursuant to that merger, Novus changed its name to AppHarvest and began trading under the stock symbol APPH. The press release announcing the closing of the merger stated that AppHarvest had built a 60 acre greenhouse that AppHarvest claimed was combining conventional agricultural techniques with the latest in controlled environment agriculture technology to grow high-quality fruits and vegetables throughout the year. On that announcement, AppHarvest shares rose to trade above $35.00 per share.
On March 4, 2021, AppHarvest filed a Registration Statement and Prospectus with the SEC enabling insiders to exercise warrants on up to 13,250,000 shares and sell up to 84,211,418 shares of AppHarvest common stock. In the Prospectus, AppHarvest touted its “highly experienced” greenhouse personnel and disclosed it had begun harvesting its first tomato crop in January 2021. AppHarvest shares closed at $28.76 the day prior to that filing.
On May 17, 2021, AppHarvest announced its first quarter 2021 results and said “We are pleased by our fast start to the year, the encouraging operating and financial performance of our Morehead facility and our team’s ability to scale the business.” The press release added, among other things, that “Our team of expert growers kicked off our first harvest starting in mid-January, and since then, we’ve ramped up production on all of the 60 acres as of the first week of May.”
Before the market opened on August 11, 2021, AppHarvest announced its second quarter 2021 (which ended June 30, 2021) results and said it experienced labor training and productivity issues that forced AppHarvest to dramatically lower its 2021 revenue and adjusted EBITDA guidance.
Following this news, AppHarvest’s shares fell $3.46 per share, or over 28%, and closed at $8.51 per share on August 11, 2021.
For further information about this investigation, contact:
Robert C. Finkel
Joshua W. Ruthizer