TTCF - Tattooed Chef stock climbs 16% postmarket on expanded Walmart distribution deal
- Tattooed Chef ( NASDAQ: TTCF ) stock climbed 16% postmarket on Tuesday after the firm announced an expanded distribution deal with Walmart ( WMT ) and a $10M asset purchase agreement with Desert Premium.
- TTCF will increase its brand's frozen shelf presence from 5 to 13 SKUs and expand availability of these 13 SKUs from an average of 300 WMT stores to an average of 2K WMT stores.
- TTCF expects initial availability of its products at the new WMT locations no later than Oct.
- The company also acquired certain assets from Desert Premium for ~$10M and inked a lease deal for an 80K sq. ft. manufacturing facility in Albuquerque, New Mexico - where the acquired assets currently operate.
- The acquired assets include packaging and production equipment, and the leased facility expands TTCF's manufacturing footprint with significant cold storage and ambient storage.
- The facility's proximity to TTCF's New Mexico operations will allow the firm to consolidate distribution activities to capture added economies of scale.
- TTCF expects operations of the new facility to be cash flow neutral through the rest of 2022 and be accretive to earnings by the start of 2023.
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Tattooed Chef stock climbs 16% postmarket on expanded Walmart distribution deal