The Kalera PLC (NASDAQ: KAL) stock price was up 38.89% during premarket trading as investor optimism, and interest in the company remained high. Today’s premarket rally added to yesterday’s gains, where the stock closed the session up 45.16%.
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The two-day rally comes after Kalera announced Monday that it was restructuring its German business Kalera GmbH. The German courts are supervising the restructuring process, and the company expects it to go smoothly.
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Kalera told investors that since announcing its decision to divest its international business, it had received significant interest from external investors and was working closely with its financial advisors to explore all options.
However, the vertical farming company has not signed any binding agreements for acquiring its German business, nor has it signed any deals with investors interested in backing the business.
The markets cheered the news, given that Kalera’s management expressed confidence that a deal would be signed by the end of the year. The company intends to resume its German operations next year.
The company also confirmed that it was still in the process of divesting its Vindara seed genetics business and expects to complete the deal by the end of 2022. The firm has also reduced the costs at its US headquarters to shorten its path to profitability.
Investors cheered the announcements, as evidenced by yesterday's rally that continued during premarket trading today. Over 7.89 million shares had changed hands at the time of publishing.
Aric Nissen, Kalera’s Chief Marketing Officer, said: “We continue to see strong demand in the market for our existing and newly launched products. This is driving increased capacity utilization levels across all of our U.S. facilities. We will accomplish our strategic imperative of becoming cash flow positive through our successful partnership with US Foods in the food service channel and the continued development of strong consumer packaged goods brands in the retail channel. We see great potential in the loose-leaf category as it has a market size approximately five to seven times that of whole head lettuces at retail in the U.S.”
*This is not investment advice.
Kalera stock price.
The Kalera stock price rallied 38.89% to trade at $0.25, rising from Tuesday’s closing price of $0.18.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.