APRN - Blue Apron skyrockets 71% after paying off debt shifting to asset-light model

2023-06-09 12:25:02 ET

Blue Apron ( NYSE: APRN ) popped in mid-day trading on Friday after closing on its previously announced transaction with FreshRealm and announced that it has shifted to an asset-light model.

Under the agreements, Blue Apron ( APRN ) transferred its operational infrastructure to FreshRealm, including fulfillment centers, equipment, know-how and related personnel. Blue Apron received approximately $25M of upfront cash, subject to certain adjustments, and is eligible to receive up to $25M  of value upon the achievement of certain milestones. Notably, Blue Apron ( APRN ) has now paid off all its debt after completing the repayment of all its outstanding senior secured notes

Looking ahead, Blue Apron ( APRN ) said it expects to be more agile with decision making and will continue to reduce PTG&A costs. The company believes the new moves will allow it to get to profitability quicker.

Shares of Blue Apron ( APRN ) jumped 71.21% in morning trading to cross back over the $9.00 level. The stock is now showing a small gain for the year. but is far below the 52-week high of $98.64.

More on Blue Apron:

• Blue Apron earnings call transcript
• Blue Apron compared to sector peers
• Seeking Alpha's Quant Rating for Blue Apron
• One-year trading chart on Blue Apron

For further details see: