BELVIDERE, NJ - Edible Garden AG Incorporated (NASDAQ:EDBL, EDBLW), a key player in controlled environment agriculture (CEA), announced today that it has received grants from the USDA Organic Certification Program, managed by the Farm Service Agency. The funding is intended to support organic producers and handlers by providing financial assistance to cover costs related to obtaining and maintaining organic certification and processing certifications.
Jim Kras, CEO of Edible Garden, expressed satisfaction with the grants, stating that the funds will alleviate some of the expenses associated with their organic certification efforts at their facilities in Belvidere, New Jersey, and Grand Rapids, Michigan. He emphasized the importance of organic certification to the company's mission and noted that the grants will also contribute to research and development for new product innovation.
Edible Garden is recognized for its sustainable and organic produce and products, which are available in over 5,000 stores across the United States. The company operates state-of-the-art greenhouses and processing facilities and maintains a network of contract growers. Its commitment to sustainability is also reflected in its Zero-Waste Inspired® mission and the use of sustainable packaging.
The company's proprietary GreenThumb software aims to optimize greenhouse growing and reduce food miles, which are often associated with pollution. Edible Garden also holds patents for its self-watering in-store display technology, designed to extend plant shelf life and enhance customer experience.
Beyond produce, Edible Garden develops ingredients and proteins, including plant and whey protein powders under its Vitamin Way® and Vitamin Whey® brands, and offers a line of sustainable food flavoring products.
This announcement is based on a press release statement, and while it includes forward-looking statements regarding the company's growth strategies and financial performance, these are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. Edible Garden does not commit to updating any forward-looking statements post-publication to reflect subsequent events or changes in expectations.
In other recent news, Edible Garden AG Incorporated reported a robust Q2 in 2024, marked by a significant increase in gross profit and an expansion of distribution channels, despite a net loss for the quarter. The company's gross profit rose by 157%, driven by a 61% increase in cut herbs and a 30% increase in vitamins and supplements. However, the company reported a net loss of $1.21 per share for Q2.
Edible Garden AG also announced a new partnership with Green’s Natural Foods and The Extra Supermarket in New York and New Jersey, further expanding its distribution in the Northeastern United States. In other developments, the company's shareholders approved an amendment to its equity incentive plan, increasing the shares reserved for issuance and extending the plan's term.
The company is also facing a potential delisting from Nasdaq due to a failure to maintain the minimum required bid price. Edible Garden AG plans to appeal this decision. These are the recent developments in Edible Garden AG's business operations.
InvestingPro Insights
While Edible Garden AG Incorporated (NASDAQ:EDBL) has secured USDA grants to support its organic certification efforts, recent financial data from InvestingPro paints a challenging picture for the company. Despite a revenue growth of 18.14% in the last twelve months as of Q2 2024, reaching $14.77 million, the company's profitability remains a concern.
InvestingPro Tips highlight that Edible Garden is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could potentially impact the company's ability to fully capitalize on the USDA grants and expand its organic product line as planned.
The company's stock performance has been particularly weak, with InvestingPro data showing a staggering 97.97% price decline over the past year. This significant drop aligns with another InvestingPro Tip indicating that the "stock has fared poorly over the last month."
For investors interested in a deeper analysis of Edible Garden's financial health and market position, InvestingPro offers 17 additional tips, providing a comprehensive view of the company's challenges and potential opportunities in the competitive CEA market.
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