Vertical planting firm Kerala eyes SPAC deal
- ByStartupStory | February 2, 2022
Another vertical farming operation discovered its plans to hit Nasdaq with the aid of using manner of SPAC. This week, Florida-primarily based Kerala introduced plans to merge with Agrico Acquisition Corp. in a deal that values the agtech corporation at $375 million. The flow comes as lots of pleasure swirls across the category, even though Kerala which presently lists at the Euronext Growth Oslo trade, has visible an extraordinary inventory charge drop over the past year.
The business enterprise`s falling cost is extraordinary because it has seen its inventory fall from a 52-week excessive of $five. ninety-nine in keeping with proportion to just $zero. ninety-one as of its maximum latest close, in keeping with Google Finance data. (The business enterprise intends to delist from its cutting-edge trade as a part of the transaction, its launch states.)
Why pursue a SPAC aggregate whilst the business enterprise has already been listed? The deal could offer the corporation investment because it works to develop its cutting-edge quantity of farms from 4 to 10. According to an investor presentation from December 2021, the business enterprise stated that it became “actively pursuing one-of-a-kind financing options to fulfill our financing necessities for 2022.”
It’s now no longer difficult to see why. Per the business enterprise`s Q3 2021 profits report, its operations burned $8.7 million withinside the first 9 months of the final year, whilst it’s making an investment coins float became a stiffer -$110.zero million for the equal period. Capital
raised of $61.five million helped in part offset the one’s deficits, however, Kerala nevertheless published an internet coin extrude of -$57.2 million withinside the first 3 quarters of 2021. It closed the September area with $56.2 million well worth of coins and equivalents — extra simply, the business enterprise wishes extra capital to hold expanding, as its operations are deep withinside the crimson and the business enterprise is a long way from attaining coins float breakeven, not to mention high-quality internet income.
Follow Startup Story
Related Posts
