AeroFarms emerges fully funded from Chapter 11

September 18, 2023

AeroFarms Inc. announced the successful completion of its restructuring process and exit of its business from Chapter 11. To lead AeroFarms through its next stage of growth, Molly Montgomery, a veteran of the food and agricultural industry and a venture partner with Grosvenor Food & AgTech, has been appointed acting CEO and executive chairperson of the AeroFarms board of directors

This includes the approval from the bankruptcy court for its Asset Purchase Agreement with a group of existing investors, led by Grosvenor Food & AgTech, including an expanded relationship with Doha Venture Capital.

This restructuring substantially strengthens AeroFarms’ balance sheet, injecting the necessary funds to reach profitability at the flagship operation in Danville, VA. The company has eliminated spending on all projects that do not contribute to the ramp-up of the Danville farm, thereby accelerating its path to profitability.

Since the Danville Farm began shipping product to customers in September 2022, revenues have continuously climbed to meet growing demand. More recently, the completion of several automation projects has further increased the throughput and efficiency of the farm. The company targets completing the ramp-up of its Danville operation by the end of 2023 and reaching profitability at the farm soon thereafter.

Consumer demand and sell-through for AeroFarms microgreens products are extremely strong. At the Danville farm, the company grows and distributes high-quality microgreens on a consistent, year-round basis with robust flavor and higher nutrient density than its more mature green counterparts.

Currently, AeroFarms microgreens can be found in over 2,000 retail locations throughout the United States, including nationwide at Whole Foods Market stores and in regional locations of Ahold Delhaize, Harris Teeter, H-E-B and others.

“This marks a new chapter in the maturity and growth of AeroFarms,” stated Stephan Dolezalek, managing partner at Grosvenor Food & AgTech. “AeroFarms’ founders established the world’s most advanced vertical farming technology. We have now put in place changes needed to deliver on their vision. As an investor dedicated to creating a more sustainable global food supply chain, we see vertical farms as a critical part of the solution and are now focused on efficiently scaling our operations to deliver a market-leading product through a profitable business model.”

Acting CEO Montgomery currently serves as a board director for companies across the agricultural supply chain, including Wilbur-Ellis, The Wine Group, Custom Made Meals and Benson Hill. She brings invaluable operational experience from successfully scaling profitable businesses within the fresh food sector.

Most recently, Montgomery served as a CEO of CMM, a private-equity owned company in the fresh protein sector. Prior to CMM, she served as CEO of Landec Corp., a public company with Curation Foods, Landec’s largest business unit, a provider of fresh, packaged vegetables and salad kits.

“As we face the mounting challenges of climate change and food insecurity, we need to rethink our global food supply chain,” said Montgomery. “AeroFarms is a testament to the innovative thinking required to deliver highly nutritious food in a more sustainable and cost-efficient manner. The Danville farm is an impressive operation, leveraging proprietary technology to deliver a fresh product that is less vulnerable to climate-related threats. I am looking forward to working with Guy Blanchard, the newly named AeroFarms president, and the rest of the AeroFarms team to complete the ramp-up of the Danville facility and to deliver a profitable operation that will enable future growth.”