AeroFarms Secures New Financing to Support Danville Operations and Expansion Planning

Key Takeaways:

• AeroFarms refinances existing debt and secures equity funding to support its Danville, VA facility
• New funds will also support pre-construction activities for a second planned vertical farm
• Equity provided by existing investors including Grosvenor Food & AgTech, Ingka Investments, Cibus Capital, and ACEG
• New loan from Siguler Guff replaces previous debt, offering improved financial terms
• USDA-guaranteed loan expected to follow, with Waterside Commercial Finance advising on the process

Debt and Equity Transactions Support Ongoing Operations For AeroFarms

AeroFarms, a U.S.-based indoor vertical farming company and supplier of microgreens, has refinanced its debt and secured additional equity financing. The transactions aim to support the ongoing operations at its facility in Danville, Virginia, and provide resources for pre-construction planning related to a second farm.

The company’s latest financing round includes contributions from its existing investors and a new loan facility arranged to replace a previous debt structure.

In a statement, Molly Montgomery, Executive Chair and CEO of AeroFarms, said, “Our vision is to provide local food production of nutritious microgreens to regions around the world, while preserving natural resources. We have recently demonstrated that vertical farming can indeed be sustainable, profitable, and produce fresh greens at scale.”

Equity Financing and Investor Participation

The equity round included participation from existing AeroFarms investors: Grosvenor Food & AgTech (GFA), Ingka Investments, Cibus Capital, and ACEG. According to the company, the capital raised will contribute to maintaining operational continuity in Danville and fund the early development of its next site.

Stephan Dolezalek, Managing Partner of GFA, stated: “We believe AeroFarms can play a significant role in the global fresh food supply chain by providing nutritious greens at scale to local regions around the world. AeroFarms has now proven the ability to deliver the transformative benefits of vertical farming through a viable, profitable business.”

Refinancing with Siguler Guff and Transition to USDA-Backed Loan

The company completed an asset-based loan with Siguler Guff in May 2025, which was used to fully repay its previous facility from Horizon Technology Finance. The new loan includes revised terms, such as a lower interest rate and interest-only payments, as well as provisions for equipment financing.

Siguler Guff coordinated the interim financing with a USDA Guaranteed lender. AeroFarms expects a permanent USDA-guaranteed loan to close later in the year.

Waterside Commercial Finance acted as AeroFarms’ USDA finance advisor, overseeing underwriting and execution through its Bridge-to-USDA Program, and is supporting the transition to the long-term USDA-backed facility.

Operational and Expansion Planning For AeroFarms

The financing package provides AeroFarms with capital to continue its operations at the Danville facility and prepare for a potential second farm. The company has stated its intent to increase local production of leafy greens while aligning with regional and sustainability goals.

No timeline has been confirmed for the construction of the second site, but pre-construction activities are underway, supported by the newly raised funds.

AeroFarms has not disclosed the specific location or capacity of the second farm.