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REHOVOT, Israel - Steakholder Foods Ltd. (NASDAQ:STKH), known for its 3D-printed meat and cultivated cell technology, has declared an upcoming adjustment to the ratio of its American Depositary Shares (ADSs) in relation to its ordinary shares. The new ratio, effective April 28, 2025, will be set at one ADS for every five hundred ordinary shares, a shift from the current one-to-one hundred ratio. This change is tantamount to a one-for-five reverse ADS split for shareholders. The announcement comes as the company’s stock has experienced significant volatility, with InvestingPro data showing an 85.79% decline over the past year and a current market capitalization of just $0.52 million.
The Nasdaq Capital Market will continue to list Steakholder Foods’ ADSs under the ticker "STKH," albeit with an updated CUSIP Number of 583435300. The Bank of New York Mellon, acting as the depositary bank for the ADS program, will manage the conversion, automatically exchanging five existing ADSs for one new ADS on the effective date. Shareholders do not need to take any action to facilitate this process.
As a result of the adjustment, fractional shares may occur, which will be consolidated and sold by the depositary bank. The net proceeds from these sales will then be distributed to the respective ADS holders. This adjustment will not involve the issuance of new ADSs.
Founded in 2019, Steakholder Foods is at the forefront of the alternative protein industry, offering 3D-printing production machines and proprietary premix blends to enable manufacturers to produce alternative protein foods efficiently. The company’s technology aims to replicate the complex textures of traditional meats and is also venturing into the integration of cultivated cells for future food technology advancements. According to InvestingPro analysis, the company faces significant financial challenges, with a weak overall health score of 1.32 and rapid cash burn rate. Subscribers to InvestingPro can access 14 additional key insights about STKH’s financial position and growth prospects.
The information for this report is based on a press release statement from Steakholder Foods. The company’s forward-looking statements indicate their plans and expectations for future business operations and financial performance. However, these statements are subject to various risks and uncertainties that may cause actual results to differ. Steakholder Foods has cautioned that reliance on these forward-looking statements should be tempered by the potential for unforeseen changes affecting the company’s outcomes. Financial metrics from InvestingPro highlight these challenges, showing a debt-to-capital ratio of 0.84 and negative EBITDA of -$8.01M in the last twelve months.
In other recent news, Steakholder Foods has secured approximately $1.25 million through a private placement agreement with technology investor Alumni Capital LP. This transaction involves the sale of 985,028 American Depositary Shares (ADSs) and warrants to purchase an equivalent number of ADSs, expected to provide the company with funds for working capital and general corporate purposes. Additionally, Steakholder Foods has established an equity line of credit with Alumni Capital, which offers flexible funding options to support strategic growth. In its commercial endeavors, the company has announced significant advancements, securing its first purchase orders for SH™ Fish and SH™ Beef premix blends. These orders are part of Steakholder Foods’ strategy to establish recurring revenue streams, marking a step forward in its commercialization efforts. The company has also formed strategic partnerships with firms such as UMAMI Bioworks and Vegefarm Co. Ltd., aiming to expand its presence in the global food industry. Notably, Steakholder Foods received accolades at the Plant-Based World Expo in London for its innovative products. The company’s focus on the U.S. market is underscored by appointing Saar Bracha to lead initiatives there and collaborating with Nexum Group. Research and development efforts continue, supported by a USD 490,000 SIIRD grant for innovation in 3D-printed hybrid fish.
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