KAL - KAL STOCK NEWS

Kalera, Inc., a vertical farming company, has filed for Chapter 11 bankruptcy in Texas to explore strategic options, including potential asset sales. The company has secured $5.1 million in debtor-in-possession financing to maintain operations during the process. Kalera will continue its Houston and Denver facilities, serving existing customers. Despite the filing, Kalera PLC, its parent company, and other subsidiaries are not included. Mark Shapiro has been appointed as Chief Restructuring Officer to oversee the restructuring efforts. Additionally, Kalera missed its 10-K filing deadline for 2022, highlighting ongoing operational challenges.

Kalera's Transformation into a U.S. Vertical Farming Giant

On January 30, 2023, Kalera announced the sale of its international business to Growy Holdings BV, allowing it to focus on becoming a leading vertical farming company in the U.S. This strategic separation aims to reduce cash burn and accelerate the path to cash flow positivity. The divestiture includes Kalera GmbH's headquarters in Germany, a farm in Kuwait, and another under construction in Singapore. Kalera plans to classify the international business as discontinued operations and continues to explore the divestiture of its seed genetics business, Vindara, to enhance cash flow.

Kalera Public Limited Company (KAL) has announced steps to achieve cash flow break-even by the end of fiscal 2023. CEO Jim Leighton noted strong demand for their products and operational improvements, with expected cost savings of 74% compared to 2022. To enhance efficiency, production will temporarily halt at the Orlando and Atlanta farms, reducing operating expenses by approximately $4.9 million annually. Additionally, corporate relocation to Denver will save $0.8 million in G&A expenses. The divestiture of international assets and the Vindara seed genetics business aims to cut G&A expenses by 50%. Kalera continues to expand its partnership with US Foods.

Kalera has announced a 100-for-1 reverse stock split of its ordinary shares, effective December 23, 2022. This decision, approved by shareholders during an extraordinary general meeting, aims to increase the company's per share trading price and ensure compliance with Nasdaq's minimum share price requirements. Following the split, ordinary shares will start trading at a new adjusted rate, consolidating 91,877,828 shares into 918,778 shares. Fractional shares will be compensated in cash. Kalera maintains its Nasdaq symbol KAL.

Kalera Public Limited Company is convening an extraordinary general meeting on December 15, 2022, to propose a reverse stock split aimed at maintaining its Nasdaq listing. Chairman Curtis McWilliams emphasized that shareholder approval is crucial to avoid delisting, which could reduce liquidity and access to capital. The split will consolidate shares but not affect total company value or ownership percentages. Shareholders must vote to ensure compliance, as those on record by November 8, 2022, are eligible to vote.

Kalera has announced its decision to restructure its German subsidiary, Kalera GmbH, through a court-supervised process. Following an earlier announcement to divest international assets, the company received significant interest from investors. While no deals are finalized, Kalera expects to announce a transaction by year-end and continue operations in Germany in 2023. Additionally, Kalera is working to become cash flow positive by reducing operational costs by approximately 50% through divesting its Vindara seed genetics business and cutting expenses at its U.S. headquarters.

Kalera Public Limited Company (Nasdaq: KAL, KALWW) reported a significant revenue increase in Q3 2022, totaling $1.7 million, more than double compared to the previous year. Foodservice and retail revenues rose by $0.4 million each year-over-year. However, net loss improved to $1.1 million from $11.6 million a year prior. The company is focused on achieving cash flow break-even by the end of fiscal 2023 amid increased operational metrics. Kalera raised $8.84 million through a recent public offering, aiming to strengthen its balance sheet and expedite profitability.

Kalera Public Limited Company announced its preliminary financial results for the third quarter of 2022, expecting net sales of approximately $1.6 million, more than double from Q3 2021, driven by increased volumes. Capacity utilization is projected at 24%, up from 11% year-over-year, aiming for 70% by end-2023. Volume sold is anticipated to rise to 480,000 pounds compared to 240,000 pounds last year. The company will discuss these results on a conference call on November 15, 2022.

Kalera will release its financial results for Q3 2022 after market close on November 14, 2022. A conference call to discuss these results is scheduled for November 15, 2022, at 8:00 a.m. ET, which will be accessible via phone and webcast. Additionally, Kalera will participate in the 2nd Annual Roth AgTech Answers Event on the same day in New York City, providing investors an opportunity for one-on-one meetings with management and insights into the company’s operations and prospects.