AeroFarms Expands Operations with New Funding in Danville, Virginia

News Summary

AeroFarms, a leader in the indoor vertical farming industry, has secured funding to support the development of a second farm in Danville, Virginia. This financial boost will aid in debt refinancing and enhance pre-construction activities. The company’s innovative practices, combining advanced technologies with sustainable practices, showcase their commitment to revolutionizing food production and making fresh greens accessible to communities. With significant investor support and strategic moves, AeroFarms is positioned for growth in the fast-evolving vertical farming sector.

AeroFarms Secures Funding for Second Farm Expansion in Danville, Virginia

AeroFarms, a leader in the indoor vertical farming industry, has successfully refinanced its debt to sustain operations and expand its farming capabilities in Danville, Virginia. The company is taking essential steps to enhance its existing facility while also planning for the construction of a second farm. By obtaining equity financing, AeroFarms is gearing up for the critical pre-construction activities linked to this expansion.

Enhancing Local Food Production

AeroFarms’ objectives focus on providing fresh and nutritious microgreens on a global scale while safeguarding the planet’s natural resources. Notably, this innovative approach demonstrates that vertical farming can be not only sustainable but also profitable. The company’s model has shown the potential to produce fresh greens at scale, thereby making a significant impact on the food supply chain.

Funding Support from Existing Investors

The infusion of capital comes from existing investors such as Grosvenor Food & AgTech, Ingka Investments, Cibus Capital, and ACEG, highlighting their continued support for AeroFarms’ vision. This financial backing is instrumental as the company seeks to bolster its position in the market while addressing the growing demand for locally sourced produce.

Debt Refinancing Strategy

To better manage financial resources, AeroFarms has employed an asset-based loan from Siguler Guff to pay off a previous debt facility from Horizon Technology Finance. The new loan, closing in May 2025, provides favorable interest rates and interest-only terms, which also include provisions for equipment financing—an essential aspect of the company’s operational strategy.

Collaboration with Financial Partners

Furthermore, Siguler Guff has teamed up with a leading USDA Guaranteed lender to offer interim financing until the permanent USDA-guaranteed loan is finalized later this year. Waterside Commercial Finance played a crucial role as AeroFarms’ exclusive USDA finance advisor, facilitating the transaction under its Bridge-to-USDA Program.

Leading Supplier of Microgreens

Currently, AeroFarms captures over 70% of the U.S. retail market share for microgreens, making it the preeminent supplier in the industry. Utilizing cutting-edge techniques such as patented aeroponics technology complemented by robotics and artificial intelligence, the company cultivates microgreens using 100% renewable energy, setting an industry standard for sustainability.

Resource Efficiency in Farming

AeroFarms’ methods are significantly more resource-efficient compared to traditional farming practices. The company reports a remarkable reduction in resource consumption, using 90% less water and 230 times less land. This efficiency not only contributes to environmental conservation but also offers an alternative food production model that other growers can emulate.

Commitment to Social and Environmental Standards

As a Certified B Corporation, AeroFarms maintains a strong commitment to social and environmental standards, reflecting its dedication to operating ethically and sustainably. The company’s microgreens, which are now available in retailers such as Harris Teeter and Costco, come with substantial nutritional benefits, offering four to forty times the nutrition of regular mature vegetables.

Extended Shelf Life and Convenience

AeroFarms’ microgreens have a shelf life of 18 to 23 days, enabling consumers to keep these fresh products at home for extended periods. Additionally, the company’s soil-free and pesticide-free growing methods ensure a ready-to-eat product that requires no washing, further enhancing convenience for consumers seeking fresh and healthy food options.

Looking Ahead

With this recent funding and refinancing efforts, AeroFarms is poised to make significant strides in the expansion of its farming operations. The ongoing commitment to sustainable practices and innovative farming techniques positions the company not just as a leader in the vertical farming sector but also as a vital contributor to the future of food production.

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Additional Resources

• Business Wire: AeroFarms Raises Equity to Fund Second Farm
• Produce Grower: AeroFarms Locally Grown Microgreens at Harris Teeter
• iGrow News: AeroFarms Latest News
• PR Newswire: AeroFarms Celebrates Partnership with Costco
• Supermarket News: AeroFarms Emerges from Bankruptcy
• Wikipedia: Vertical Farming