Meal-kit provider Blue Apron Inc.’s stock
APRN,
soared 20% premarket Tuesday, after it announced plans to shift to an asset-light model by transferring infrastructure technology to FreshRealm, a provider of fresh meals to retailers across the U.S. The companies have signed a non-binding letter of intent for the transfer, with Blue Apron to receive up to $50 million and FreshRealm to get warrants in an amount equal to 19.9% of the company’s then-outstanding common stock at an exercise price of 1 cent a share. Blue Apron does not expect any change to its revenue streams, but will focus on further growing the brand and striving for still-elusive profitability. “As we continue to evolve, we believe there is an opportunity to simplify our direct role in the fulfillment of our product, allowing us to focus on growing our brand, our customer base and revenue in the long-term,” said Chief Executive Linda Findley in a statement. The deal is expected to close on or about June 9. FreshRealm already makes Blue Apron’s “heat & eat” meals. Blue Apron stock is down 44% in the year to date through Monday’s close, while the S&P 500
SPX,
has gained 7.7%.
