At the time of the most recent check, shares of Kalera Public Limited Company (NASDAQ: KAL) were trading 32.50% higher at $0.2385 after a tactical move.
What action did KAL take?
Kalera (KAL) said yesterday that it has made the decision to start a court-supervised restructuring procedure for its German subsidiary, Kalera GmbH (f/k/a “&ever”). Following Kalera PLC’s declaration on October 18, 2022, that it intended to sell the assets of its worldwide company, KAL started closely working with financial consultants to explore strategic alternatives. Since then, Kalera GmbH has drawn a lot of attention from outside investors.
KAL is optimistic that a deal will be announced by the end of the year and that business activities in Germany will continue in 2023 when the restructuring process is finished, even though no legally binding agreements to buy or invest in Kalera GmbH have yet been made. Kalera persisted in carrying out their plan to become cash flow positive. One of the crucial elements in this procedure is the sale of its overseas company, and KAL is certain that it will advance on this and other crucial cash flow projects before the year’s end. With so much vertical farming potentials in the US, Kalera is still concentrating on long-term economic growth.
The company is continuing to sell off its Vindara seed genetics business in an effort to further transform Kalera into a cash flow-positive company, and it anticipates closing the transaction around year-end 2022. Additionally, the company is cutting costs at its American headquarters. The amount of money required to run the firm will be reduced by around 50% as a result of these divestitures and cost-cutting efforts. For its already available and recently-launched products, KAL continued to see significant market demand. All of KAL’s U.S. facilities are seeing higher capacity usage levels as a result.
How does KAL plan to proceed?
Through fruitful cooperation with US Foods in the food service channel and sustained growth of potent CPG brands in the retail channel, Kalera (KAL) will achieve its strategic goal of being cash flow positive. KAL believes the loose leaf market has a lot of promise since it is five to seven times larger than the market for full-head lettuces sold at retail in the United States.