Discover below the latest news from Kalera PLC, a vertical farming company publicly traded under the ticker symbol ” KAL. ”
Kalera Inc Sells Vindara To Sandton Capital Solutions (2023/05/12)
Kalera PLC (Kalera Stock: KAL) has sold its wholly-owned subsidiary Vindara Inc. to Sandton Capital Solutions Master Fund V, L.P., marking a significant step in its restructuring plans. Sandton Capital acquired Vindara, specializing in indoor farming seed development through a stock purchase agreement, where all of Vindara’s common shares were sold for around $3.99 million. This sum includes the forgiveness of a $3.3 million debt Kalera owed to Sandton Capital, a condition included in the agreement. The debt forgiveness stems from a loan agreement between Kalera and Farm Credit of Central Florida, which Vindara guaranteed. The sale highlights Kalera’s ongoing efforts to reshape its business following its bankruptcy filing.
Kalera PLC Receives 2nd Delisting Notice.
The Nasdaq Stock Market has delisted the company due to failure to file its Form 10-K for the fiscal year ending December 31, 2022, and because it is considered a public shell under Listing Rule 5101, making its securities’ continued listing unwarranted. The common stock ceased trading on April 17, 2023, and the company has no plans to challenge Nasdaq’s decision. The delisting also affects the company’s warrants, trading under the symbol KALWW (Kalera Stock: KAL).
Kalera Files For Bankruptcy & Secures $5.1M DIP Financing (2023/04/05)
Kalera (Kalera Stock: KAL) has voluntarily filed for Chapter 11 bankruptcy via its primary operating subsidiary, Kalera, Inc. Under the court’s supervision, the company plans to continue business as “debtor-in-possession,” ensuring uninterrupted operations. In addition, the bankruptcy process will allow Kalera to explore strategic alternatives for its business and assets, potentially including a sale. Mark Shapiro of B. Riley Advisory Services has been named the Chief Restructuring Officer to oversee this process. Additionally, to maintain operations during restructuring, Kalera’s existing lender has agreed to provide $5.1 million in debtor-in-possession (DIP) financing, pending approval from the Bankruptcy Court. Concurrently, the company’s President and CEO, Jim Leighton, has stepped down to pursue other opportunities, and legal firm Baker & Hostetler LLP, along with B. Riley Advisory Services, have been retained to guide the restructuring process.
Its International Assets Were Acquired By Growy Holdings (2023/01/31)
Vertical farming company Kalera GmbH was acquired by Growy Holdings B.V., including its German headquarters and farms in Kuwait and Singapore. This strategic move allows Kalera to concentrate solely on its U.S. operations and stimulate long-term growth in key consumer sectors. Kalera will retain its licensing agreement for Kalera GmbH’s intellectual property, while the international business will be labeled as discontinued operations in financial statements. Proceeds from the sale will be used to pay outstanding promissory notes and other liabilities, improving Kalera’s financial position and moving towards a positive cash flow. Kalera’s President and CEO, Jim Leighton, emphasizes the potential for growth within the U.S. market and the value this refocus offers shareholders. In addition, employees from the international business will be retained by Growy Holdings, ensuring continuity and support for future growth.
Kalera (NASDAQ: KAL) Further Cost-Cutting Measures (2023/01/13)
The company planned to temporarily suspend operations at its Orlando and Atlanta farms, resulting in an estimated annual operating expense reduction of around $4.9 million. During the suspension, the Houston farm will cater to all retail volume in the southeast. Kalera also intends to move its corporate offices to the Denver farm from Orlando, saving approximately $0.8 million annually in General & Administrative expenses. In addition, the company is already divesting its international assets in Kuwait and Singapore and the Vindara seed genetics business, projecting a nearly 65% drop in operational losses and G&A costs in 2023 compared to 2022. Throughout this restructuring, Kalera continues to leverage its partnership with U.S. Foods to develop innovative products and drive sales.
Receives Its First De-Listing Notice & Votes On Reverse Stock Split (2022/12/23)
Facing a potential delisting from NASDAQ due to its shares trading under $1.00 for more than 30 consecutive days and under 10 cents for ten consecutive days, the vertical farming company appealed the delisting. It moved to implement a reverse stock split. Despite efforts to reduce its monthly cash burn rate and hasten its path to profitability, disappointing performances in Q2 and Q3 resulted in a significant decrease in share price. Before an extraordinary shareholder meeting, the board advised voting FOR the reverse stock split proposal to maintain the listing criteria of the Nasdaq Capital Market. Kalera Stock proceeded with a 100-for-1 reverse stock split, bringing its pre-market share price to $9.60 on December 23, 2022.
Project In Bermuda Halted (2022/23/11)
The government of Bermuda has halted its vertical farming project with Florida-based company Kalera following reports of substantial losses in the company’s recent quarters and its move towards a restructuring plan. Kalera, which partnered with the Bermuda Economic Development Corporation to establish a subsidiary on the island, had failed to reduce operating expenses and missed EPS & Revenue estimates. Initially part of Bermuda’s economic recovery plan, this project faced strong opposition from local experts who doubted its feasibility and alignment with the country’s recovery strategies. In addition, increased energy prices also contributed to global Controlled Environment Agriculture (CEA) facilities incurring losses or halting operations, prompting several to enter restructuring plans.
Q3 2022: Missed Earning Per Share Estimates by 217% & Revenues Estimate By 24.78%
In its Q3 results, vertical farming company Kalera Public Limited Company (Kalera Stock: KAL) posted revenues of $1.7 million, a notable rise from $0.8 million YoY and $0.4 million QoQ. However, the company did not meet EPS and Revenue estimates and reported a net loss of $1.1 million, factoring in a $19.8 million change in fair value for the contingent value earnout and warrants and a $2.3 million one-time non-cash charge for property, plant, and equipment impairment. Kalera, aiming to reach cash flow break-even by FY 2023, has outlined strategies for growth in underserved markets and has taken steps to enhance its liquidity. This includes raising $8.84 million from a public offering and announcing plans to divest its Vindara subsidiary and other international holdings.
Facing The Challenges, The CEO Presents New Strategy and Path To Profitability (2022/09/23)
During a recent virtual event, Kalera Public Limited (Kalera Stock: KAL), a vertical farming company, presented its new strategy and path to profitability. CEO Jim Leighton spoke about the firm’s shift towards becoming a consumer packaged goods (CPG) platform and the key differentiators that support its mission, such as a global footprint, technology stack, and customer-oriented approach. The company’s indoor vertical farming operations emphasize environmental sustainability, providing locally sourced, nutritious leafy greens. Kalera’s retail store footprint is growing, and the company aims to increase revenue potential by expanding its product mix to include higher-margin produce like loose-leaf lettuces, herbs, and microgreens. Additionally, Kalera plans to increase its international presence using a business model that includes joint ventures, partnerships, and licensing fees. Co-founder Dr. Jade Stinson discussed the company’s vertical integration and its seed subsidiary, Vindara, which develops seeds specifically for vertical indoor farms. Leighton concluded the event by underscoring Kalera’s investment potential, given its emerging growth, quality products, strong customer relationships, and experienced team.
Kalera Expanded Its Retail Distribution Signing Many Partnerships (2022/08/30)
Kalera Public Limited Company announced a 25% growth in its retail store count this year, reaching 1,370 stores to date, and projected to surpass 40% growth by year’s end. In addition, the company plans to expand its market reach into areas lacking access to local and fresh produce by leveraging its consumer-centric, branded CPG platform. It anticipates this will significantly increase volumes, revenue, and farm profitability in 2023. The recent addition of Trader Joe’s as a partner to serve its Houston facility further strengthens Kalera’s growth. The company also disclosed that its Denver farm is now fully operational, four months ahead of schedule, offering whole head, loose-leaf, and microgreens to consumers and food service operators in Denver. The company’s growth is underpinned by increasing acceptance of its products, heightened consumer awareness about fresh food and nutrition, and concerns about environmental impact and global food security.
Missed On EPS & Revenue Estimates (2022/08/22)
Kalera Public Limited Company (Kalera Stock: KAL) reported Q2 2022 financial results, missing the earnings per share and revenue estimates with USD 1.3 million revenue against the expected USD 1.84 million and a net loss of USD 78.7 million due to one-time non-cash and business expenses. Despite these figures, CEO Jim Leighton highlighted significant year-over-year revenue growth in Q2, attributing it to the strategic partnership with US Foods and momentum in food service sales. The quarter also saw Kalera’s NASDAQ listing, a new large-scale vertical farming facility in Denver, and a strengthened balance sheet. Additionally, Kalera secured a 10-year, $30 million Senior Secured Credit Facility from Farm Credit of Central Florida to support its capital and working capital needs. Post-quarter, Kalera executed a $10 million private placement to increase liquidity and strengthen its balance sheet. Looking ahead, Kalera aims to grow its sustainable lettuce, microgreens, and herbs production in the US and internationally, focusing on areas with low accessibility to fresh produce. Kalera expects growth will be backed by factors like increased acceptance of their products, consumer awareness of healthy nutrition, vertical farming’s environmental benefits, and global food security concerns.
Kalera & Agrico Completes SPAC For NASDAQ Listing (2022/06/29)
Kalera Public Limited Company and Agrico Acquisition Corp have announced their business combination’s completion, with Agrico shareholders’ approval. The merged entity will retain the Kalera name and begin NASDAQ listing under the ” KAL ” ticker as of June 29, 2022. The merger marks an important milestone for Kalera’s goal of increasing access to fresh produce amidst climate change, loss of fertile farmland, and soil erosion. Kalera’s products are pesticide-free, non-GMO, and grown in climate-controlled environments that support sustainable farming. The company has recently expanded its footprint with a new 90,000-square-foot farm in Aurora, Colorado. It operates globally with farms in Munich and Kuwait and plans to open a farm in Singapore. The Denver facility is already in production, with its first harvest in May.
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