Are SPAC deals a smart strategy for agtech?

November 10, 2021 | Case Study

Controlled environment agriculture (CEA) is reaching new heights in market momentum and attracting interest from various industry players. Accordingly, large corporations are placing their bets, and in parallel, a number of CEA startups have announced plans to go public.

In February 2021, AeroFarms, a leading CEA developer that produces leafy greens using an aeroponic production system, announced a deal to go public with special-purpose acquisition company (SPAC) Spring Valley. The company currently has four vertical farms situated in and around Newark, New Jersey, and is building an R&D farm in Abu Dhabi as part of a $100 million investment by the Abu Dhabi Investment Office. However, AeroFarms and Spring Valley mutually called off the deal in October 2021, without specifying the reason behind the merger's termination.

Related companies	Ginkgo Bioworks, AeroFarms, Spring Valley

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