Tattooed Chef Inc (NASDAQ: TTCF) shares are trading higher Wednesday after the company announced an expanded distribution agreement with Walmart Inc (NYSE: NYSE:WMT).
The expanded agreement with Walmart will increase the availability of Tattooed Chef branded products at Walmart stores across the U.S.
Under the agreement, Tattooed Chef will increase the brand's frozen shelf presence from 5 to 13 SKUs and expand the availability of these 13 SKUs from an average of 300 Walmart stores to an average of 2,000 Walmart stores. Initial availability of Tattooed Chef's products at these new Walmart locations is expected no later than October.
Tattooed Chef also announced the simultaneous signing and closing of an asset purchase agreement with Desert Premium Group and the signing of a new lease agreement that will strengthen its vertically integrated operating model and add approximately 80,000 square feet of manufacturing capacity.
The company said it expects the operations of this new facility to be cash flow neutral through the remainder of 2022 and be accretive to earnings by the start of 2023.
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TTCF Price Action: Tattooed Chef has a 52-week high of $15.64 and a 52-week low of $5.84.
The stock was up 9.21% at $6.85 at press time, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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