Martha Stewart-Backed AppHarvest Plunges After Farm Delays 

On Monday, high-tech greenhouse startup AppHarvest plunged as much as 23% to $2.66, a 52-week low after reporting worsening preliminary 2021 financial results and farm delays. 

The company expects a full-year net loss between $170-$172.5M, including fourth-quarter non-cash goodwill and an intangible impairment charge of around $60M. FY21 revenues are estimated at $8.9-$9.1M, higher than the company’s guidance of $7-$9M. Adjusted EBITDA loss is forecasted to be between $69.3-$72.5M, compared with $70-$75M.

One of the main drivers for share decline today was delays at two indoor verticle farms. The first was at an indoor facility that grows salad greens and another for tomatoes, and both won’t be fully operational until the end of the year. The company said last August that both facilities would be operational by the midpoint of the year. 

The Kentucky-based vertical farm company grows vegetables in futuristic greenhouses that yield up to 30x more crops per acre than traditional outdoor farming. Operational delays and money-losing operations have resulted in the share price cratering at least 88% from the IPO price. 

Short sellers have piled into the stock on deteriorating fundamentals, with 15.3 million shares short over the last year. The short-interest ratio is about 11.532. 

AppHarvest has routinely boasted about food entrepreneur and icon Martha Stewart and Impossible Foods Chief Financial Officer David Lee joining the company’s board. However, touting celebrities has yet to boost the share price.