Kalera Public Limited Company (Nasdaq: KAL), announced today that it intends to divest its subsidiary, Vindara, and the assets of its international business. Vindara is expected to continue serving Kalera’s strategic custom seed needs and serving other indoor farming companies. The international business includes the previous &ever GmbH management team, and farming assets in Kuwait and Singapore.
“We expect that these divestitures will address the strategy we announced in September to bring our U.S. farms to cash flow positive much faster than anticipated while reducing capital requirements for all Kalera holdings,” said Jim Leighton, President and Chief Executive Officer of Kalera.
This will allow the Orlando headquartered management team to focus all efforts on U.S. Farms and reduce its monthly cash burn rate.
“These transactions align with the capital-light business model we discussed in our analyst and investor event last month,” Leighton said. “It will allow us to stay laser-focused on bringing our U.S. farms to cash flow positive faster while reducing our capital requirements.”
In addition to their plans, Kalera’s announced that its retail presence increased since it started floating signing deals with Trader’s Joe and earlier this year with US Foods.
The announcement sent its stock price up by 39.44% a few minutes after the publication of its press release announcing its plans edgin closer to its USD 1.00 per share mark. It will be interesting to see the effects of these transactions on the financial results of the company for the third as well as the fourth quarter of the year.
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Image provided by Kalera Public Company
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