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Bezos-backed farm startup in talks for more than 90% cut in value


(Bloomberg) — Plenty Unlimited Inc., the vertical farming pioneer backed by billionaires including Jeff Bezos, is in talks for a new round of financing that will virtually wipe out existing shareholders, according to a person familiar with the matter.

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Plenty, which has raised nearly $1 billion from investors such as Eric Schmidt and SoftBank Group Corp., is in talks to raise an additional $125 million as part of a recapitalization, according to people familiar with the matter. The new deal would value the company’s existing stock at less than $15 million, one of the people said. Investors previously valued Plenty at $1.9 billion, according to PitchBook.

The company declined to comment on the deal.

In recent weeks, Plenty installed an interim chief executive following the departure of Arama Kukutai, said one of the people, who spoke on condition of anonymity to discuss private information. The new acting CEO is Daniel Malech, previously the company’s senior vice president of strategy and general counsel.

At the same time, the company is undergoing a broader shift in strategy. Instead of growing a variety of fruits and vegetables, Plenty will focus on strawberries, which bring more profit.

Kukutai and Malech did not respond to requests for comment.

New York-based investment firm One Madison Group is expected to lead the new financing. SoftBank’s Vision Fund, a longtime Plenty investor that has invested more than $400 million in the company, is also in talks to participate, the people said, as is Walmart Inc. The financing is not yet finalized and could still fall apart, they added.

SoftBank and Walmart declined to comment. A Madison group did not respond to requests for comment.

Plenty’s shift in strategy reflects larger struggles for the once-promising indoor grow industry. The news comes just months after Bowery Farming, previously valued at $2.3 billion, ceased operations, according to reports. Before that, companies including AeroFarms, Kalera and AppHarvest all filed for bankruptcy.

Plenty is a leader in the world of indoor farming, which aims to use less land and water to grow food while avoiding the effects of climate-induced extreme weather. Founded a decade ago, it has attracted a star-studded list of billionaire backers, as well as investment from corporations such as Driscoll’s Inc.



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