What is Pure Harvest’s stock price, and are they publicly traded? Investors cannot purchase shares of Pure Harvest because they are a private company. There’s a huge demand for fresh fruits and vegetables in the Gulf region. With such a high demand it could tempt Pure Harvest Smart Farms into an IPO.
Have you even heard of Pure Harvest Smart Farms? This style of farming is taking the UAE by storm. In a place that isn’t necessarily conducive to farming, Pure Harvest has helped to change that. As a result, they can grow produce all year around. And they can keep grocery stores stocked all year long.
The climate of the UAE stays hot and dry for most of the year, making it nearly impossible to grow vegetables and fruits using traditional farming techniques. Therefore, the country heavily relies on agricultural imports to meet the needs of its residents.
However, the higher air freight costs make the vegetables expensive for the end buyers. Besides, the products aren’t fresh due to the prolonged shipment process.
Nevertheless, UAE-based startup Pure Harvest Smart Farms is trying to change things around for the country by producing greenhouse fruits and vegetables in the harsh climate of the Gulf. The company uses the latest greenhouse technologies to produce vine vegetable crops such as tomatoes, cucumbers, and strawberries. Pure Harvest says that its vision is to ensure the availability of fresh farm produces at affordable prices throughout the year.
The company believes that controlled environment agriculture (CEA) is the only way to achieve true food security in the arid regions. CEA creates a controlled environment for plants that ensures their optimum growth. The technology also prevents the loss of natural resources like food, water, and energy.
Moreover, Pure Harvest claims that its technology is 7 times more efficient than conventional desert greenhouse farms. And over 30 times more efficient than conventional field farming. The company grows vegetables and fruits throughout the year as a part of its broader strategy to make the country self-sufficient in terms of fresh vegetable availability.
Pure Harvest stock could capitalize on that demand if it successfully managed to supply fresh farm produce to the region on a consistent basis.
If you know how to invest in foreign stocks, you can check for Pure Harvest stock on other foreign exchanges.
A Look at the Funding Rounds so Far
Pure Harvest is backed by Abu Dhabi-based investment fund Shorooq Investments. Pure Harvest raised $1.1 million in its first funding round in 2017. The company used the proceeds to buy land and technologies for setting up its farms.
Later that year, it announced another record $4.5 million Seed round. The company’s technology partners, investment funds, and several investors around the world participated in the funding round. Pure Harvest used the proceeds to construct its first climate-controlled high-tech greenhouse facility in Nahel, UAE. Back then, the company also announced its plans to enter the remaining countries in the Gulf region; which are facing similar issues that the UAE is facing.
Moving forward, Pure Harvest inked a multi-stage investment agreement with Wafra International Investment Company last year in April. The deal, valued at more than $100 million, is the biggest investment in any agriculture technology firm in the Middle East region. As a part of the agreement, Wafra’s CEO Ghazi Al-Hajeri joined Pure Harvest’s Board of Directors.
Wafra’s investment has been helping Pure Harvest to develop advanced CEA solutions in the region and sustainably grow quality fruits and vegetables irrespective of outdoor climate conditions. Pure Harvest’s CEO Sky Kurtz also welcomed the investment and said the funding will help the company to further strengthen its pioneering position in the Middle East.
Separately, Pure Harvest secured another funding worth $50 million through Islamic bonds, called Sukuk, in March 2021. The funding was led by Shuaa Capital. The company intends to use the proceeds to expand its operations in the Middle East and increase its farm produce portfolio.
Growth Prospects for Pure Harvest Stock
Pure Harvest primarily operates in the UAE. But it has plans to enter neighboring Gulf countries. It has already inked partnerships to set up farms in Saudi Arabia and Kuwait.
The company’s growth prospects look bright as the region wants to limit its dependence on food imports. Moreover, food self-sufficiency is also critical in the events of a global health crisis such as the Covid-19 pandemic.
Nevertheless, the company will continuously need more money to expand operations and invest in new agricultural technologies. CEO Sky Kurtz said in an interview that Pure Harvest is relatively underfunded when compared to agriculture tech companies in the U.S.
Kurtz added the modern agriculture industry is capital intensive and raising funds in the Middle East region is comparatively tough. However, he admitted that raising capital of $200 million during the initial stages is a big achievement. He thanked the company’s partners who helped in the fundraising process.
Looking forward, the company may decide to go public. Pure Harvest stock can attract new investors. And the company can support its future growth after becoming a public entity.
A Lookback on Notable Events
Pure Harvest announced the first successful harvest of its premium quality vegetables in November 2018. The company hosted a big product launch ceremony at its farm. Investors, customers, and distinguished guests from different parts of the world attended the event. The initial results were encouraging for the company as the total yield exceeded its expectations by 20 percent for the first season.
Back then, management realized that greenhouse technology can be economical on a commercial scale. The results enabled Pure Harvest to become the first major UAE-based agribusiness company to produce fresh tomatoes in extreme summer. The company established its first greenhouse in collaboration with Certhon Greenhouse Solutions; a leading builder of modern greenhouses. Moreover, high-tech company Privahelped it in installing an automated climate management system inside the greenhouse.
Separately, Pure Harvest entered into a strategic partnership with Alliances for Global Sustainability (AGS) in April 2020. As a part of the agreement, Pure Harvest will have access to more than 30 hectares of land in Al Ain, Abu Dhabi for establishing its high-tech greenhouse. CEO at AGS, Sheikha Shamma joined the company’s board as a part of the deal.
Moving forward, Pure Harvest inked a $35 million agreement with The Sultan Centre to build a high-tech farm in Kuwait using the controlled-environment agriculture model. The farm will be constructed on an area of 8 hectares and will be dedicated to producing vegetables and fruits for the country.