• Kalera, a Norwegian hydroponic vertical farming operator, has signed a definitive agreement to merge with Agrico Acquisition Corp, a special purpose acquisition company (SPAC) to go public on the Nasdaq. Kalera was previously privately listed on the Euronext Growth Oslo stock exchange and will delist upon closing of this transaction. The transaction is expected to close in Q2 2022, upon approval by shareholders and other customary closing conditions. 

• The transaction would reportedly result in an equity value of USD 375 million for the combined company on a fully diluted pro forma basis. Kalera and Agrico would own 52% and 42% of the outstanding common stock of the combined entity, respectively.

• Additionally, Kalera will receive assets of Agrico, including USD 146.1 million cash in trust, which will support the former’s plans of expanding its vertical farming network in the US and international markets. The new entity will be managed by Kalera’s management team led by interim CEO Curtis McWilliams.

<ul><li> Analyst QuickTake: The announcement to go public comes amidst Kalera’s expansion plans and strengthening demand for its vertically produced greens. In September last year, Kalera received USD 1.2 million to fund the construction of its Houston facility, which will reportedly be the company’s largest facility. The company operates four farms and supplies to almost 1,200 retail and foodservice stores, including retailers Publix, Kroger, and H-E-B . It competes with startups like Bowery Farming (650+ stores), Plenty, and Infarm (1,300+ stores), which are also primarily US-focused.</ul>