Agritech provider Opti-Harvest has significantly downsized its proposed initial public offering (IPO) to $8 million from its original target of $35 million. In a filing, the developer of crop-yield optimization technology stated that it is now offering 2 million shares priced between $3.50 and $4.50, which would raise $8 million if priced at the midpoint. Underwriters would have a 45-day option to purchase up to 300,000 additional shares at the IPO price.
Opti-Harvest, which is hoping to list its shares on Nasdaq under the symbol OPHV, has WestPark Capital as the lead bookrunner for the IPO. In August, the company had indicated in its S-1 filing fee schedule that it was seeking up to $35 million through an offering of units and underlying warrants.
The agritech market has seen a significant increase in interest in recent years, as farmers and growers look for ways to optimize crop yields and reduce costs. Commercial farmers and backyard gardens may make greater use of sunshine thanks to Opti-Harvest’s equipment and technologies. With the use of its Opti-Filter products, which include Opti-Gro, Opti-Shield, and ChromaGro, it may increase productivity in mature vineyards and orchards and optimize the use of land and water resources (Opti-Skylights, Opti-Panels). The precision farming platform Opti-View is an addition to the Opti-Filter product line. The firm started selling its Opti-Gro and ChromaGro goods in the first half of 21; its Opti-Shield and Opti-Panel in the second half of 22; and it intends to sell its Opti-Skylight products in the third half of 23. Its Opti-View product is presently in the R&D stage, with a 2H23 commercial launch planned.
Despite the downsizing of the proposed IPO, Opti-Harvest’s technology and potential for growth in the agritech market may still attract investors. The Agritech market is rapidly growing and with increasing pressure on farmers and growers to optimize crop yields and reduce costs, the demand for technology like Opti-Harvest is expected to grow in the coming years.