- Kalera ( NASDAQ: KAL ) +5.8% on Friday provided an update on measures it plans to implement to achieve break-even cash flow and 74% cost savings by the end of 2023.
- The company plans to temporarily halt production at the Orlando and Atlanta farms, which will result in an annual run rate reduction of operating expenses of about $4.9 million.
- Kalera will operate Houston and Denver farms at near capacity, with optimized product mix for retail and foodservice, which would accelerate farms’ path to profitability, the company said.
- Kalera said it is relocating its corporate offices from Orlando to the Denver farm, reducing corporate G&A expenses by about $0.8 million annually.
- Operations at its international businesses, including in Germany, Kuwait, and Singapore, have been shut down, which will reduce annual G&A expenses by about 50%.
- Kalera expects to reduce its G&A expenses and operating losses in 2023 by about 65% compared to 2022.
- Expenses related to merger with Agrico Acquisition were one-time in nature, which would reduce expenses by $7.5 million in 2023, Kalera said.
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Kalera details cost saving plans for 2023, shifts focus to Houston and Denver farms, shares jump