KAL - Why Kalera Stock Is Plunging This Morning
Shares of Kalera (NASDAQ: KAL) were plunging 20.2% at 11:03 a.m. ET Friday morning after shareholders of the specialist in alternative farming methods (known as "vertical farming") approved a 100-for-1 reverse stock split yesterday.
The reverse split became effective today and began trading on a split-adjusted basis at the market's open. Prior to the reverse split, there were 91.9 million shares outstanding. The 20.2% decline today is split-adjusted.
As the name implies, vertical farming seeks to grow plants vertically rather than in horizontal rows in the ground. The reasoning behind it is that because land is scarce and expensive, and demand for food continues to increase, new methods of growing are needed. Vertical farming tends to rely on aquaponics, aeroponics, and hydroponics instead of soil.
For further details see:
Why Kalera Stock Is Plunging This Morning