NEW TECH FOODS

Steakholder Foods has announced a significant funding initiative aimed at bolstering its growth and innovation efforts.

The company has entered into definitive agreements for a private placement with Alumni Capital, securing $1.25 million through the sale of 985,028 American Depositary Shares (ADSs) at a price of $1.269 per ADS.

Additionally, Steakholder Foods has established an equity line of credit with Alumni Capital, providing up to $8 million in flexible funding.

The private placement will include warrants allowing Alumni Capital to purchase up to an additional 985,028 ADSs at an exercise price of $2.00 per ADS, with an expiration period of five years. The gross proceeds from this placement are expected to support general corporate purposes and enhance the company's working capital.

The ELOC agreement offers Steakholder Foods a strategic funding mechanism that allows the company to control the timing and amount of equity sales, minimizing potential dilution for existing shareholders. This flexibility is crucial as the company continues to innovate in the rapidly evolving alternative protein market.

Arik Kaufman, CEO of Steakholder Foods, highlighted the significance of these agreements in the company’s growth strategy.

“Today’s agreements with Alumni Capital represent a key milestone in our growth strategy... offering immediate funds for our continued strategic growth,” he said. “They are designed with the best interests of our shareholders in mind, offering immediate funds for our continued strategic growth, as well as offering us the ability to access capital efficiently while mitigating dilution. We are grateful for the strong support and confidence from Alumni Capital and welcome them to the Steakholder Foods family.”

Listen to this podcast with Steakholder Food's Arik Kaufman, who explores the cutting-edge advancements shaping the future of food production.

The capital infusion is expected to accelerate the development of Steakholder's proprietary 3D printing technologies, which are designed to produce alternative proteins that closely mimic the taste and texture of traditional meat products.

Steakholder Foods specialises in creating 3D-printed proteins, including beef steaks, white fish, shrimp and eel, using proprietary premix blends derived from high-quality raw ingredients.

The company is also exploring the integration of cultivated cells into its production processes, positioning itself at the forefront of food technology advancements.

The alternative protein market is experiencing rapid growth, driven by increasing consumer demand for sustainable and ethical food options.

Traditional livestock farming is under scrutiny due to its environmental impact, including greenhouse gas emissions and resource consumption. As a result, companies like Steakholder Foods are gaining traction by providing innovative solutions that address these challenges.

The recent funding will enable Steakholder Foods to enhance its research and development capabilities, further solidifying its position in the competitive landscape of food technology. The company aims to meet the rising expectations of consumers for products that not only taste good but also contribute to a more sustainable food system.

Ashkan Mapar, portfolio manager at Alumni Capital, expressed confidence in Steakholder Foods' vision and management team, stating: “We are pleased to partner with Steakholder Foods as they continue to innovate and grow. This agreement reflects our confidence in the Company's vision and management team, and we look forward to supporting their efforts to drive sustainable value creation.”