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BELVIDERE, NJ - Edible Garden AG Incorporated (NASDAQ:EDBL), a pioneer in controlled environment agriculture with a market capitalization of approximately $4 million, announced significant enhancements in crop yields at its New Jersey facility, attributed to its recent nanobubble technology trial. According to InvestingPro data, the company currently trades at a low revenue valuation multiple, suggesting potential market undervaluation relative to its peers. The project, a collaboration with Brisea Group Inc., the New Jersey Commission on Science, Innovation, and Technology, and the New Jersey Institute of Technology, has yielded promising preliminary results.
The nanobubble technology, which improves water oxygenation and nutrient uptake while bolstering pathogen control, led to an up to 55% increase in crop yield and a 30% reduction in harvest cycle time compared to traditional irrigation methods. These improvements not only boost production rates but also enhance plant health, evidenced by stronger root development and reduced biofilm in irrigation systems.
Jim Kras, CEO of Edible Garden, highlighted the alignment of these results with the company’s mission to optimize agriculture efficiency while adhering to Zero-Waste Inspired® farming principles. According to Kras, the technology’s payback period is under three months, underscoring its potential scalability and appeal to growers seeking sustainable solutions. While the company generated revenue of $14.07 million in the last twelve months with 7.88% growth, InvestingPro analysis indicates the company is quickly burning through cash, making operational efficiency improvements crucial.
Edible Garden is set to continue its partnership with Brisea, CSIT, and NJIT to further refine this technology. The company aims to drive sustainable farming innovation, focusing on solutions that bolster food security, minimize environmental impact, and provide consumers with fresher and more responsibly grown produce.
The company operates state-of-the-art greenhouses and processing facilities and has a network of contract growers near major U.S. markets. Its proprietary GreenThumb software aims to optimize vertical and traditional greenhouse growing while reducing pollution-generating food miles.
This news is based on a press release statement from Edible Garden AG Incorporated. The company cautions that these forward-looking statements are subject to risks, uncertainties, and assumptions, including market conditions and the company’s growth objectives. Edible Garden undertakes no obligation to update these statements to reflect actual results or changes in expectations post-publication. For deeper insights into EDBL’s financial health, growth prospects, and 14 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Edible Garden AG Inc has been making significant moves. The company’s shareholders recently approved a reverse stock split, a decision aimed at restructuring its capital. The specific ratio for the split is yet to be determined by the board of directors. In another development, Edible Garden secured $1.66 million through a financing arrangement with Cedar Advance LLC. This involved the sale of future accounts receivable, a strategic financial move that allows the company to manage its cash flow and continue operations.
In the third quarter of 2024, despite facing challenges, Edible Garden reported an increase in gross profit and significant margin growth, even though its quarterly revenue saw a drop. The company’s strategic shifts and infrastructure improvements could potentially lead to a strong fourth quarter. The company also raised $5.65 million through a September S1 offering, which was used to pay down debt and invest in working capital. These recent developments underscore the company’s active management of its financial obligations and its focus on improving its financial position.
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