Last week, Kalera (NASDAQ:KAL) received a notice from the Listing Qualifications Staff of NASDAQ indicating that a delisting procedure would be enacted as not only has Kalera’s shares been trading under a USD 1.00 a share for more than 30 consecutive trading days but it has been trading under 10 cents a share for 10 consecutive trading days which is against the listing rules set out by NASDAQ. The company requested an appeal of the delisting determination by requesting a hearing before the Panel.
Over the past few weeks, the company entered a restructuring program in order to decrease its cash-burn rate and improve its financial statements but consecutive poor quarters added to the current macroeconomic event led investors to short their position in the company. Shortly after receiving the notice, its stock appreciated above the 10 cents mark currently trading at 12 cents a share at closing on Friday 25th.
Nonetheless, the company had also to recall its produce because of possible health risks linked to Salmonella infections detected earlier in November.
This morning, the company announced entering a restructuring process of its German subsidiary through a court-supervised process to align with its commitment to decreasing its cash-burn rate as quickly as possible. As per the company’s statement, Kalera GmbH received interest from external investors, though no agreements have been signed to either acquire or invest. The company expects that divesting its international assets, its seeds company, and part of its U.S. headquarters will contribute to decreasing the operational costs by 50%.
Image provided by Kalera (NASDAQ:KAL).