Just wait for the discount (KAL)
Kalera announced that it entered into a private placement with a single investor for 2.5 million shares at $4 per share. The shares are being sold with accompanying Series A and B warrants. The warrants are exercisable at $4.41 per share six months from issuance and will expire between two years and five and a half years depending upon the class. The discount in price is surprising given that Kalera just de-SPACed a week ago.
More baby food imports (PRGO)
The FDA said it is looking at ways to allow overseas manufacturers of infant formula to continue to sell in the U.S. beyond the current shortage. Previously the FDA said imports could continue until November 14. The FDA plans to issue further guidance in September to meet future requirements. Additional suppliers of infant formula are not ideal for Perrigo, but it is the lowest priced manufacturer. When the supply is sufficient again manufacturers will have to support their brands, just being on the shelves will not be good enough. Products that earn their share through branding or innovation could lead to additional store label brands for Perrigo in the future.
Plant-based protein SPAC (LJAQ)
Moolec Science will go public through a SPAC merger with LightJump Acquisition Corp. (LJAQ). The merger values the company at $504M. When Moolec de-SPACs in the second half of 2022, the ticker symbol will be MLEC. Moolec Science was spun out of Bioceres Crop Solutions.
Moolec Science uses genetically modified plants to produce proteins that are usually found in animals. Moolec has created two products so far – Chymosin, a protein used in making cheese and gamma-linoleic acid, a nutritional oil. The pipeline status and serviceable addressable market of several products are detailed below. The IPO and SPAC market is difficult enough for established companies (Panera, Chobani, and Impossible Foods among others) in the current environment. One issue for Moolec is that many of the consumers who purchase plant-based foods are against consuming genetically modified foods. We disagree with the company that consumers have embraced genetically modified foods. The vast majority of genetically modified crops are soybeans and corn that people do not consume directly.
