Why Blue Apron Stock Is Shooting Higher Today

Blue Apron Holdings, Inc. APRN shares are trading higher by over 50% after the company announced the closing of the FreshRealm transaction valued at up to $50 million.

As per the deal, Blue Apron sold its operational infrastructure to FreshRealm and received about $25 million of upfront cash, subject to certain adjustments.

Also, the company is eligible to get up to $25 million of value, post achievement of certain milestones.

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Blue Apron repaid all its outstanding senior secured notes and became debt-free through the proceeds gained from this deal. 

As the company moves to an asset-light model, Blue Apron further plans to streamline its business.

The company aims to cut headcount and administrative expenses and drive additional cost savings, with a continued decrease in cash burn on a Y/Y basis, exceeding the initiatives disclosed in December 2022.

APRN will update its profitability goals and plans in Q2 2023 earnings call.

Price Action: APRN shares are up 63.70% at $8.76 on the last check Friday.