The Kalera PLC (NASDAQ: KAL) stock price was trading down 16.34% during the premarket session as investors took profits on their positions following yesterday’s massive 76.92% rally in its stock price.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Kalera’s announcement after the market closed on Wednesday triggered yesterday’s rally as the company revealed that it had received a non-compliance notice from the Nasdaq regarding two violations of the minimum required stock price for listed companies.
The firm’s statement said it had appealed the notice, giving it more time to regain compliance with the Nasdaq's listing rules. The company’s shares rallied higher as investors reacted positively to the announcement.
However, for every reaction, there is a reaction. Typically, parabolic rallies tend to be followed by significant pullbacks, as seen in today’s decline as KAL shares retraced some of yesterday’s gains. Nevertheless, the company has been making bold moves recently, including several fundraising events where it raised millions to continue funding its operations.
Kalera’s last capital raise was in late October, when it raised $8.84 million by selling 68 million shares at $0.13 each. Therefore, the company has enough shares to affect a reverse stock split and regain compliance with the Nasdaq listing rules.
Meanwhile, the sellers were piling into Kalera stock as over 2.07 million shares had changed hands at the time of publishing. The company has recently unveiled plans to divest its seed genetics business, Vindara, and some of its international assets.
The company intends to focus on its US business while reducing operating costs. The move could fast-track the company’s progress towards profitability.
*This is not investment advice.
Kalera stock price.
The Kalera stock price had fallen 19.20% during premarket trading, erasing some of yesterday’s gains.
