Blue Apron eliminates all debt after FreshRealm deal closes, stock soars a day after reverse-split takes effect
Shares of Blue Apron Holdings Inc. soared 53.3% in volatile midday trading Friday, after the meal-kit company announced the closing of its previously announced deal in which the company transferred its operational infrastructure to fresh meal provider FreshRealm. The stock has been halted three times for volatility since the open. The stock's rally comes a day after a one-for-12 reverse stock split took effect, which effectively multiplied the stock price by 12, so it could bring the company into compliance with the New York Stock Exchange's minimum-bid listing requirement. The stock closed at about 52 cents on June 7 prior to the reverse split, then closed at $5.35 on June 8 to reflect a 15.0% drop on the day. With the closing of the FreshRealm deal, Blue Apron said it received $25 million in cash upfront, and is eligible to receive up to $25 million if certain milestones are achieved. The company with the payment it has "eliminated its debt." The stock has dropped 17.7% year to date