Kentucky has been experiencing record amounts of rainfall in recent years, so for Webb, the location was obvious. A specialist in knee surgery, Webb has performed countless surgeries in elite rugby union teams. In the 1987 Rugby World Cup, Webb made his debut for England. ESG should be at the core of profitability and it should be at the core of building a resilient company. I would not want to be one of those large operators and food today when you see the consumer trends changing as quickly as they are, and we feel very optimistic again about where our growth trajectory is. This article will briefly review the most important information. "It's hard to be the one that's looking two decades down the road while thinking of the here and now.". People, planet, wonderful, but I'm trying to make money. People at large tech companies question what theyre actually building. "For us, at AppHarvest, this isn't just about a company. I think they certainly will be. Despite IPOs last year having the worst returns in a decade, Webb said he believed 2021 was an important time for the company to go public and stood by the decision to take the company's mission "directly to the Street" and to receive the "rigor of Wall Street early," which he claimed will only make the company "stronger in the long run.". Director recently sold US$216k worth of stock Nov 24 AppHarvest, Inc. In the back of his mind, he wondered what he could do to help. Our team is built to scale and you look at where we're at today, we've launched our first facility. I want to know what the problems are from them, not just our executive team. What makes AppHarvest so unique? WebGet Chad Hill's email address (c*****@appharvest.com) and phone number at RocketReach. Originally from Kentucky, Webb is dedicated to sustainable projects in Central Appalachia. Jonathan, thank you so much for taking the time out of your busy schedule to see just more about AppHarvest to talk about all the stuff that you're trying to accomplish there. Almost every company in the coal industry has gone bankrupt over the last 10 years. He has many impressive accomplishments. Its the single largest LED installation in the United States despite using constant passive solar, waters its plants using recycled rainwater, employs an integrated pest management system to avoid any pesticides, has a 30x higher production yield than traditional open field agriculture, and has the ever so modest goal of transforming the future of agriculture. You have food safety concerns. Brooke DiPalma is a producer and reporter for Yahoo Finance. We've been able, very fortunate, a very talented team, MIT team out of Boston that has a proven track record and great products that we've integrated them fully into the AppHarvest team. We're going to be headquartered in Central Appalachia, execution at scale here in the U.S. but this is a global problem that we've gotten phone calls from around the world about how and when we can take our solution and go elsewhere. The High Stakes of the Roundup Cancer Lawsuit: Why Billions of Dollars are on the Line, 5 Ways to Get Money for Investment Property. Again, for us, it's about keeping our head down, growing good fruit and vegetables. Photo credit: US controlled environment agriculture (CEA) startup, has announced a merger with NASDAQ-listed special purpose acquisition company (SPAC), The deal is slated to bring in $475 million in gross proceeds for Kentucky-based AppHarvest, including a private investment in public equity (PIPE) transaction worth $375 million from existing and new investors including, I cant say this was the exact plan but what accelerated all of this was Covid-19, AppHarvest CEO Jonathan Webb told, . Thanks as always to Tim Sparks for putting the show together for us. Jonathan Webb is the largest individual Appharvest shareholder, owning 20.54M shares representing 19.04% of the company. We had 22 meetings and had almost 20 yeses. Very few passed on this deal and we eventually had to cancel meetings.. He represented his country in 33 Test matches and played for Bristol and Bath. My competition in Mexico, you have people getting paid $5 a day. We dont see it as losing money for losing moneys sake; developing that tech is investing in our future.. Its easier than ever to find a trustworthy doctor. We're really in the business of packaging up water and then shipping that out to major markets and then beyond that execution at scale. This will result in a $1.7 billion return of investment for the company. These food companies today are like the cigarette companies 40 years ago. In the same year, he scored his second try after just 23 seconds. Required fields are marked *. But then there's the other side, and introducing robotics that's operating on AI, that's collecting data in our facility and making data-driven decisions. We just want to be one of those and we're cognizant that there's going to be plenty of large players. WebFounder & CEO, AppHarvest Kentucky native and University of Kentucky graduate Jonathan Webb is turning his dream of a high-tech farming hub in Appalachia into reality with AppHarvest. The Motley Fool recommends AppHarvest, Inc. I mean, I think that kind of speaks for itself. All rights reserved. Here are five relaxing scents you can use in your bedroom. One of AppHarvest's Crop Care Specialists operates a tomato-picking robot. The Art of Self Meditation: What Are the Benefits? Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices I was really excited to be able to recommend it after all of the work I had done on the business, learning more about it, listening to you in your passion regarding this company, I think it would be beneficial for our members, for our listeners to hear it from your own words as the founder, as the CEO of AppHarvest. This year alone, more than 50 SPACs have been formed in the US, collectively raising around $36.2 billion as of last month. We have high demand for U.S.-grown and pesticide-free produce already, and when you combine that with the taste, color, and freshness of the AppHarvest model, on top of their social mission, it's driving our customers to ask for more." We have a lot of work to do ahead of us over the years to come. Founder of AppHarvest, Inc., AppHarvest Morehead Farm LLC and AppHarvest Operations, Inc., Jonathan Webb is an entrepreneur who is Chairman & Chief Executive Officer of AppHarvest, Inc. and Chairman & Chief Executive Officer of AppHarvest Operations, Inc. (a subsidiary of AppHarvest, Inc.). Even though you entered at such a young stage of your business, You essentially were pre-revenue coming into the public markets, and now, you're just getting that started. For us, we're looking at metrics, how can we be more sustainable? What are you trying to accomplish? Are we perfect? Although his net worth is impressive, its important that you remember that he doesnt have to act alone to be wealthy. "The public market needs to have a robust category of companies that are building stuff that matters," he stressed. We always talk about investing for the future because that's really what investing is all about. Do the hard work to create shareholder value now while also looking out for shareholders two decades from now, Webb said is his credo. Then Jeff Obin, who is on our board and has been an early investor. That might sound straight from science fiction, but AppHarvests CTO Josh Lessing, who designed many of these universal harvesting systems says we only think that because farming has been so slow to innovate. Let's prove to the world what we're doing through results and even that, our first quarterly earnings call today, there's a level of rigor that you're acquired through the public markets. You have to get permitting, communities [buy-in], state and federal support, infrastructure, inspections. In light of the challenges AppHarvest has faced in its early stages, Webb expressed hope that younger generations like Gen Z and millennials would continue to innovate and "fight through" any obstacles in their way. We're building infrastructure in an area of the country where we're having record amounts of rainfall, and if you look at the climate maps, we continue to get wetter. Maintaining that inclusive work culture, especially since he works in agriculture, is incredibly important to Webb, who aims to do everything from a place of empathy and considers his employees to be his first customers. Also referred to as blank check companies, the mechanism has existed for several years but has received increased attention of late. Were building important stuff with long-standing value, so the Great Resignation has actually helped us acquire talent.. AppHarvest is recovering from a challenging third quarter, in which it reported a net loss of over $17 million; Webb attributes it to hyper-growth. That's right -- they think these 10 stocks are even better buys. more. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The president and CEO, Paul Mastronardi said, "We want every AppHarvest tomato they can grow. Part of it is that building big stuff fast in the US is very hard. I was very fortunate. We're in our first decade and we're going to try to look at judging the company on decade one, decade two, and decade three. By us running on completely recycled rainwater, we have no water cost. That's not the conversation at all. "For us, being transparent with not only the consumer, but having that transparency of a public company as we build a large global food company, we think the long-term benefits are great.". Like every Kentuckian, Jonathan grew up knowing of the devastating job losses in the region. We're focused on bringing that production back from Mexico that has been shifted outside of the U.S. and bring that back into the U.S. in a controlled environment. We were just talking earlier and you mentioned how you're in the DC area, it was fortunate that we had Steve Case, the founder of AOL, and he fundraised the rest. It means being a little bit more upfront with your investors. You have climate disruption. We want to be at Wendy's, we want to be at Walmart. I hope you enjoy our conversation. Project Access, Inc. was founded by Mr. Webb in 1999. By being able to have robotics and AI they can have more real-time information. Growing up in Appalachia, Jonathan Webb watched the slow decline of the coal industry firsthand. We need to all collectively have a much more longer-term viewpoint on how we're building companies that are going to be good for communities, good for employees, and return a good return to our investors and shareholders. I go directly into the facility and talk to entry-level employees and people sweeping the floors. Moser: It's impressive to think about the scope of what you are taking on because agriculture, farming, that's been something for so long, people just think, well, it's just what it's always been and we do it this way because that's the way we've always done it. He was born into a medical family. For example, we use integrated pest management, good pest to kill bad pest. I'm sitting in the heart of coal country right now. We dont talk about this at all in the US. No one else in America is doing something at that scale. "Tech for good the consumer wants it. I could be in a penthouse in New York City, managing AppHarvest from the 32nd floor of some high-rise. Then we'll be able to give that data over to the grocer in more real-time. Because our services are focused on technology, 5G connectivity, and all of the different benefits we're going to get from that. We have a phenomenal growing team. Executive Vice President and Head of Enterprise Development, Support Activities for Agriculture and Forestry, Contract Support (U.S. Army Office of Energy Initiatives), Intelligent Assistance and Bots Ecosystem. But I think there are a lot of benefits that come with that. There won't be one automotive company transporting the world. Jonathan Webb was born on 24 August 1963, in London, England. To me, at least, it feels like we are at the [] of a disruptive phase here, and a lot of that is thanks to technology. You are speaking our language here at The Fool. Jason Moser has no position in any of the stocks mentioned. Prior to founding AppHarvest, Jonathan supported the Executive Director of the Army Office of Energy Initiatives to help meet the White House goal of supplying 20% of the Department of Defenses electricity usage from renewable sources by leveraging private sector capital for the projects. Amid the verdant rolling hills of central Kentucky, in the heart of Appalachian coal country, youll I don't know that we're going to have enough time, but let's just start first and foremost this is one of our most recent recommendations in our service. Again, tomatoes are our first crop, but by next year, strawberries and leafy greens. This year alone, more than 50 SPACs have been formed in the US, collectively raising. I mean, that is right in line. Most countries in the Middle East import nearly all of their fruit and vegetables. Its flagship facility is a 60-acre indoor farm in Morehead, a town of 8,000 in the foothills of the Appalachian Mountains, and it solely uses rainwater for its irrigation. I made the point at one point in regard to AppHarvest. Part of it is we're building companies not just for today and not just for the quarterly earnings call today, we're building this company for the next generation. One of the things we like to discuss as investors and when we find companies, we find businesses that we like and we want to be owners of. Jonathan Webb is a dual-qualified lawyer. Learn More. I think we have seen some other players in the space that are starting. I have no doubt that we will. Moser: That's exciting. A SPAC is formed with the sole purpose of raising capital through an IPO in order to acquire an existing privately-held company and take it public. Visualize our facility in Murray, Kentucky, it's 2.8 million square feet, nearly 50 football fields under-glass. That's, for us, again, there's a piece where we need to be very close to the product and that's we're optimizing for the plant. The world's food and agriculture problems are not going to be solved overnight. AppHarvest is known for its approach to CEA, which Webb called the "third wave of sustainable infrastructure." 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Again, if we look at agriculture, there's a lot of trouble in our current agriculture system and we can use ESG metrics to clean up our food supply and create better food systems. The project aimed to help achieve an Obama-era goal of ensuring the militarys hundreds of installations develop resilient on-site power generation and receive 20% of their electricity from renewable sources by 2025. Webb, a former rugby player, has a wealth experience and is now helping players return to the sport they love. His grandmother grew up in Whitley County, where a coal mining accident killed his great-grandfather. He completed a fellowship in Australia at North Sydney Orthopaedic and Sports Medicine Centre and has worked in many high-profile clinics in the area. Tomatoes will be the first fruit rolling out of AppHarvest's soon-to-launch facility in Morehead, Kentucky. 2023 Fortune Media IP Limited. Is there a benefit? Let's let the consumer of our product also be the buyer in our company. Other AppHarvest investors include TV cook Martha Stewart, VC veteran Peter Thiel, ValueAct Capitals Spring Fund, Revolutions Rise of the Rest Seed Fund, Equilibrium Capital, and Narya the new VC firm co-founded by JD Vance, author of best-selling Appalachian memoir Hillbilly Elegy. I like thinking about a future where AppHarvest and companies like you all are helping make our food supply not only here domestically, but really around the world better, more reliable, more transparent. We talk about how, There are many sources of information on Jonathan Webbs networth. You look at California and the Southwest of the U.S., drying up, drought-stricken, flagged by wildfires. Jonathan Webb: AppHarvest, we're based here in Central Appalachia and we're building some of the world's largest controlled environment agricultural facilities. Now, we want to turn this region into an area of the country that's known for sustainable food production, but beyond just loving the place, I'm from Kentucky, beyond just loving this area, we can get to three quarters of the U.S. on a day drive. We want to make sure you get the most out of our platform. To access all the content for free, please sign up by entering your email. He practices at Mayo Clinic Hospital Eau Claire. Similarly, she owns yachts and private planes and serves on the board of the Women Golf Club Foundation. Typically, you would do 40 to 60 meetings to get a couple of investors. AppHarvest raised over $475 million in a public IPO, but it is not over. in August is launching what it describes as the worlds largest greenhouse later this year, consisting of a 2.76 million square foot facility in Morehead, Kentucky. "And we don't think we could do that if we weren't in the public markets.". With a 19% stake, CEO Jonathan Webb is the largest shareholder. Webb: To put this in perspective, this was our first facility under operations, our flagship facility. Now, our job is to make sure it's at around the same price. Webb is a consultant orthopaedic physician and a board member of World Rugby. If we're going to be working with the largest players in the world, then we need to be in the big leagues, and the only way to do that is to be a publicly traded company. It's a nice evolution in the investing world that we care more and more about it. You may opt-out by. Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn. We don't want to be selling just to the high-end. Growing up in Appalachia, Jonathan Webb watched the slow decline of the coal industry firsthand. Here, we've had three years out of the last ten years in Kentucky have been our wettest years on state record. Webb, a Kentucky native and University of Kentucky graduate, says he remains committed to his goal of employing large numbers of people at high-tech farms around the eastern half of the state. This commitment, at $10 per share, values the company at $1 billion. Copyright 2023 Surperformance. The greenhouse, completed in 2020, yields up to 30 times the crops a traditional farm would, Webb said. Webb supported a large-scale solar project in Virginia while he was employed by the U.S. Department of Defense. We can have all the technological tools in the world, but at the end of the day we have to put people at the center of the equation.. This is still a very new space though. Yahoo Finance's Julie Hyman at the 2022 SXSW Conference, 3 big things in investing you might have missed this week, UPDATE 1-North Korea says US causing international arms control collapse, EU releases funds, prepares aid flight for eastern Congo, Rheinmetall in talks on building tank factory in Ukraine - report, Ukraine Latest: Metsola Urges More Sanctions Pressure on Russia. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Jonathan Webb grew up in Kentucky and has been committed to developing sustainable projects from Central Appalachia. In its Nov. 7 filing, AppHarvest reported net losses of $83 million for the first nine months of the year and net sales of $10 million, with an accumulated deficit of $270 million. Sometimes, it can even get us a few steps closer to saving he world. We had 22 meetings and had almost 20 yeses. Very few passed on this deal and we eventually had to cancel meetings., Webb describes the SPAC transaction and PIPE financing experience as absolutely phenomenal.. The deal is slated to bring in $475 million in gross proceeds for Kentucky-based AppHarvest, including a private investment in public equity (PIPE) transaction worth $375 million from existing and new investors including Fidelity Management & Research Company, Inclusive Capital, and Novus. We arent burning through cash with pointless R&D when we can buy incredible technologies over in the Netherlands, Webb says. Webb: We could not be more excited. His military experience allows him to leverage private capital for his projects. 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