Steakholder Foods raises $1.5 million through warrant exercise

REHOVOT, Israel - Steakholder Foods Ltd. (NASDAQ:STKH), a developer of alternative proteins and 3D printing technologies with a current market capitalization of $5.44 million, announced Tuesday it has entered into definitive agreements for the immediate exercise of certain outstanding warrants at a reduced price. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.42, indicating strong short-term financial stability.

The company will receive approximately $1.5 million from the exercise of 297,618 warrants at $5.00 per American Depository Share (ADS), reduced from the original $8.40 exercise price. Each ADS represents 4,000 ordinary shares of the company. This capital injection comes at a crucial time, as InvestingPro analysis indicates the company has been rapidly burning through its cash reserves.

As part of the transaction, Steakholder Foods will issue new unregistered Series A warrants to purchase up to 297,618 ADSs and Series B warrants to purchase up to 595,236 ADSs. Both new warrant series will have an exercise price of $5.00 per share.

The closing of the warrant exercise transaction is expected to occur around October 1, 2025, subject to customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent.

If the new warrants are fully exercised on a cash basis, the company could receive additional gross proceeds of approximately $4.5 million, though there is no assurance this will occur.

Steakholder Foods intends to use the net proceeds for working capital, business growth, potential repurchase of securities, and general corporate purposes.

The new warrants being offered have not been registered under the Securities Act of 1933 and will become exercisable following shareholder approval to increase the company’s authorized shares.

According to the press release statement, Steakholder Foods specializes in developing 3D-printing production machines for alternative protein products, supported by proprietary premix blends. While the company currently maintains an overall Financial Health score of "FAIR" based on InvestingPro metrics, analysts project significant sales growth for the current year. Get access to 12 additional exclusive ProTips and comprehensive financial analysis by subscribing to InvestingPro.

In other recent news, Steakholder Foods Ltd. has announced the pricing of a public offering expected to raise approximately $2.5 million in gross proceeds. The offering includes 2,380,954 American Depository Shares (ADSs) priced at $1.05 each, alongside warrants to purchase an equal number of ADSs. Additionally, Steakholder Foods has signed an agreement to acquire Twine Solutions Ltd., a company known for its digital thread and yarn dyeing technology. Under the terms of the agreement, Twine shareholders will receive about 25% of Steakholder’s outstanding equity, which could increase to 35% if certain milestones are met.

Furthermore, Steakholder Foods plans to implement a one-for-eight reverse ADS split, adjusting the ADS ratio from representing 500 ordinary shares to 4,000 ordinary shares, effective September 10, 2025. The company has also scheduled its Annual General Meeting of Shareholders for October 27, 2025, in Rehovot, Israel. Shareholders will receive proxy cards to vote on resolutions without attending in person. These developments reflect Steakholder Foods’ strategic moves in expanding its technological capabilities and financial structuring.

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