Corporate Stock Market

Kalera To Vote On Reverse Stock Split

Kalera (nasdaq:kal) missed EPS & Revenues Estimate

Kalera, a vertical farming company, will hold an extraordinary general meeting of its shareholders (EGM) to seek shareholder approval of a reverse stock split. The Board of Directors encourages shareholders to vote FOR the reverse stock-split proposal and FOR the adjournment proposal. Non-compliance with Nasdaq listing requirements would result in the delisting of our shares from Nasdaq.

Kalera will hold a crucial shareholder vote on a potential reverse stock split in order to regain compliance with the NASDAQ listing requirements after having received a de-listing notice only weeks ago. The second semester has been a roller coast for Kalera as the company has put efforts into decreasing its monthly cash-burn rate and accelerating its path to profitability but the two catastrophic performances in the second quarter and the third quarter led its stock to decrease to trade around 10-12 cents a share (far below the USD 1.00 a shared requirement).

“In order to assist guarantee that the share price of our ordinary shares satisfies the continuous listing requirements of the Nasdaq Capital Market, the Board of Directors recommends shareholders to vote FOR the reverse stock split proposal and FOR the adjournment proposal, to the extent required. “Non-compliance with Nasdaq listing rules will result in our shares being delisted from Nasdaq, which we think would result in decreased liquidity for our shareholders and limited access to finance to carry out our strategic expansion strategy,” Curtis McWilliams, Chairman of the board comments.

Another vertical farming company has performed a reverse stock split a couple of months ago, Agrify Corp but since its 1:10 reverse stock split, its share price has plummeted to flirt with the USD 1.00 line.

Image provided by Kalera

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