Is AppHarvest Stock a Good Investment?

AppHarvest stock is holding an IPO through a Novus Capital SPAC, following the path charted by Nikola. AppHarvest seeks to raise $475 million.

Ruchi Gupta - Author
By

Oct. 1 2020, Updated 10:30 a.m. ET

How to Buy AppHarvest Stock IPO in Novus SPAC Deal
Source: iStock

To go public, AppHarvest will merge with Novus Capital, a SPAC (special-purpose acquisition company). The AppHarvest-Novus SPAC deal seeks to raise $475 million, which the agriculture technology startup will deploy toward growing its business. Based in Morehead, Ky., AppHarvest provides smart technology solutions to the agriculture sector to improve farm yields. 

Article continues below advertisement
Article continues below advertisement
How to Buy AppHarvest Stock IPO in Novus SPAC Deal
Source: iStock

AppHarvest’s board of directors include Martha Stewart and J.D. Vance, the author of Hillbilly Elegy. Also on the board are former hedge fund investor Jeffrey Ubben and Impossible Foods CFO David Lee. AppHarvest CEO Jonathan Webb will continue to lead the combined company.

Article continues below advertisement

When is the AppHarvest stock IPO through the Novus SPAC deal?

On Sept. 29, AppHarvest announced its plan to go public through a SPAC instead of the traditional IPO process, following in the footsteps of Nikola and DraftKings. The exact date when AppHarvest will go public is yet to be revealed, but the startup aims to complete the process in the fourth quarter of 2020. 

Article continues below advertisement
Article continues below advertisement

Should I buy the AppHarvest stock IPO?

AppHarvest stock may appeal to investors seeking exposure to the agricultural technology space. The U.S. smart agriculture market is on track to grow to $22 billion in 2025 from $13.8 billion in 2020. 

Article continues below advertisement

With the COVID-19 pandemic exposing how reliance on imports can jeopardize a country’s food security, farmers are expected to invest more in technology to boost domestic food production, which would boost demand for AppHarvest’s technology. Investors shopping for green tech stocks may also find AppHarvest attractive. 

Article continues below advertisement
Article continues below advertisement

Where to buy the AppHarvest stock IPO

Novus Capital SPAC stock will transform into AppHarvest stock upon closure of the merger deal later this year. Therefore, investors interested in becoming AppHarvest shareholders can simply buy publicly traded SPAC Novus shares. 

You can buy Novus shares on the Nasdaq under the "NOVS" ticker symbol by opening a stock trading account with online brokers such as Webull, Tastyworks, Charles Schwab, SoFi Invest, Cash App Investing, or Robinhood.

Article continues below advertisement
Article continues below advertisement

How to buy the AppHarvest stock IPO on Robinhood

Robinhood lets you buy and sell stocks commission-free. It also supports fractional share purchases that allow you to start investing from as little as $1. Investors can buy the AppHarvest stock IPO on Robinhood by first creating a stock trading account with the broker. There are several account types to choose from. Robinhood Instant and Robinhood Gold accounts allow margin trading. 

Once you open a Robinhood trading account, you can search for AppHarvest stock under the "NOVS" symbol. From there, you can choose the number of shares to buy and place your order. 

Advertisement

Latest Financials News and Updates

    Opt-out of personalized ads

    © Copyright 2024 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.