Kalera Public Limited Company (Nasdaq: KAL), announced the closing on Monday, October 31st of a public offering to support the continued strategy to bring U.S. operating farms into cash flow positive. This additional liquidity will support the ramp-up of its existing U.S. facilities as demand continues to increase driven by the introduction of Kalera’s loose leaf category during Q3-2022.
The company started a strategy shift in September 2022 in order to accelerate its path to profitability and decrease its cash burn rate after reporting important impairment losses in its second-quarter results. The company is also at risk of a de-listing as its share price has traded under USD 1.00 for nearly a month now and currently is at USD 0.078 at closing on November 3rd.
“We are pleased to successfully close this capital raise in the public markets by having the support of some of our existing shareholders and also new shareholders that support our new business plan and strategy to focus on profitability,” commented Jim Leighton, CEO of Kalera. “This funding supports the execution of our strategy which includes introducing a wider variety of products in line with consumer demand, allowing U.S. farms to continue their path to profitability by the end of 2023, and significantly reducing our corporate overhead.”
The Company arranged a USD 8.84 million public offering with significant investment coming from existing investors, as well as new investors. Under the terms of the Offering, Kalera issued 68 million shares of the Company’s ordinary shares at a price of $0.13 per share, along with 136 million warrants to subscribe for one ordinary share each. The warrants are immediately exercisable at an exercise price of $0.13 per share and expire five years after their issuance date.
Image provided by Kalera Public Limited Company