AeroFarms lines up stalking horse deal with existing investors

By Sarah Lizee

Olympia, Wash., July 13 – AeroFarms, Inc. has lined up a stalking horse agreement with AF NewCo, Inc., a newly formed entity owned by a group of existing investors including Grosvenor Food & AgTech, Ingka Investments Ventures US BV, Cibus Fund and ACEG GmbH, according to a press release.

The company filed a supplement to its motion for approval of bid procedures for its assets to include the stalking horse agreement.

Under the stalking horse bid, AF NewCo will acquire the purchased assets by a credit bid of all debtor-in-possession facility debt outstanding as of the closing date, plus $500,000 in cash and assumed liabilities, including amounts under a venture loan facility.

AF NewCo is providing a $10 million DIP secured term loan facility to the company.

Under the proposed bid procedures, bids are due by 5 p.m. ET on Aug. 16, an auction is scheduled for Aug. 17 and a sale hearing will take place on Aug. 22.

The indoor vertical farming company is based in Newark, N.J. The company filed bankruptcy on June 8 under Chapter 11 case number 23-10737.

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