Another day, another SPAC?
AppHarvest said Tuesday it plans to go public via a special purpose acquisition company. Gross proceeds from the deal are expected to hit $475 million, AppHarvest said, taking the implied market value of the tie-up between it and Novus to around $1 billion.
AppHarvest is a green tech agricultural startup, backed by former hedge fund investor Jeff Ubben.
"We are excited to transition AppHarvest to a public company and raise nearly a half a billion dollars in the process,” said AppHarvest CEO Jonathan Webb. “This will allow us to pursue our mission of transforming agriculture. A mission that’s become even more important since the global pandemic exposed how a rapidly increasing reliance on imports jeopardizes food security."
Jim Cramer’s advice? “You buy them until they go up a lot and then you sell them,” Jim Cramer told TheStreet’s Katherine Ross on Street Lightning Tuesday.
“I always say to the SPAC people, ‘Enjoy them, but don’t get greedy,” Cramer added. Calling out his Twitter critics who claim he is “pumping and dumping,” Cramer said, “I don’t give a damn. I’m saying they go up and then you take profits.”
Catch Cramer’s full take on AppHarvest and how he would approach some of the other newly-minted public companies in the video above.