[ad_1]
- US vertical farming operator Kalera has agreed to merge with Nasdaq publicly-traded special purpose acquisition company (SPAC) Agrico Acquisition Corp. in a deal that will value the combined entity at $375 million.
- The deal is expected to close in Q2 2022, at which time Kalera will delist from the Euronext Growth Oslo exchange where it is currently traded to become a publicly-listed company with its common shares traded on the Nasdaq.
- Kalera says the infusion of capital from the deal will enable the company to build out the next generation of its vertical farms around the US and internationally, adding to its 10 existing farms that are either in operation or under construction.
Why it matters
Should the deal go through, it will undoubtedly be a financial gain for Kalera. However, controlled environment agriculture (CEA) companies don’t have a great track record so far when it comes to going public via SPAC deals. Last year, vertical farming operator AeroFarms terminated its $1.2 billion merger with SPAC Spring Valley. High-tech greenhouse operator AppHarvest, which merged with Nasdaq-listed Novus Capital in February of 2021, has watched its share price plummet in the past year, including a 21% drop this week. Kalera itself has seen mediocre performance on the Oslo Euronext exchange, where the company traded at just Kr8.07 Norwegian($0.91) at the end of January, down from Kr48 nearly a year ago.
Commentators have argued that vertical farming may be headed towards a “trough of disillusionment” with a decrease in the number of venture-backed deals closing and overall traction that’s underwhelming despite several high-profile fund raises in recent history.
The next few months will tell if Kalera can turn this seemingly downward trend around. The Orlando, Florida-based company currently has farms in its hometown as well as Atlanta, Georgia and Houston, Texas. It also operates a farm in Kuwait via its acquisition of CEA company &ever and has six more farms under construction. Kalera previously also acquired Vindara, which specializes in seed breeding for indoor ag.
“Kalera and Agrico together form a team with the expertise to bring Kalera’s fresh, clean and sustainable Local Living Lettuce to consumers across the globe,” Curtis McWilliams, interim CEO of Kalera, said in a statement. “At Kalera, we believe we have a business model that can bring nourishment across the globe while reducing environmental impact.”
[ad_2]
Source link
