Steakholder Foods secures $1.25 million in private placement

REHOVOT, Israel - Steakholder Foods Ltd. (NASDAQ:STKH), a company specializing in alternative proteins and 3D printing technologies, has finalized definitive agreements for a private placement with technology investor Alumni Capital LP. According to InvestingPro data, the company’s stock has seen significant volatility, declining 75.7% over the past year, though it maintains a healthy current ratio of 2.9x, indicating strong short-term liquidity. The deal includes the sale of 985,028 American Depositary Shares (ADSs) at a price of $1.269 per ADS and warrants to purchase an equivalent number of ADSs at $2.00 per ADS. The warrants are exercisable immediately upon issuance and will expire five years from the date of issuance.

The transaction is expected to close today, subject to customary closing conditions, and is projected to generate approximately $1.25 million in gross proceeds for Steakholder Foods, before deducting offering expenses. The company plans to use the net proceeds for working capital and general corporate purposes. This funding comes at a crucial time, as InvestingPro analysis shows the company is quickly burning through cash, with negative free cash flow of nearly $10 million in the last twelve months. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.

The ADSs, representing ordinary shares and those issuable upon exercise of the warrants, were offered in a private placement under an exemption from the registration requirements of the Securities Act of 1933. They have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Steakholder Foods has committed to filing a registration statement with the SEC covering the resale of the ADSs and those issuable upon exercise of the warrants.

Additionally, Steakholder Foods has entered into an agreement with Alumni Capital LP to establish an equity line of credit (ELOC), providing the company with a flexible funding option to support its strategic growth initiatives while aiming to minimize dilution for current shareholders. The ELOC allows the company to control the timing and amount of any equity sales, offering financial stability and strategic flexibility.

Arik Kaufman, CEO of Steakholder Foods, remarked on the significance of the agreements with Alumni Capital, highlighting the immediate funding for strategic growth and the efficient access to capital with an eye toward mitigating shareholder dilution. Ashkan Mapar, Portfolio Manager at Alumni Capital, expressed confidence in the company’s vision and management team.

Steakholder Foods, founded in 2019, is at the forefront of the alternative protein industry with its 3D-printing technology and is exploring the integration of cultivated cells for future food technology advancements. While the company trades at a modest Price/Book ratio of 0.02, InvestingPro’s Financial Health Score of 1.66 indicates challenges ahead, with the next earnings report expected on March 28, 2025.

This news is based on a press release statement and additional details can be found in the company’s Form 6-K submitted to the SEC. The press release does not constitute an offer to sell or a solicitation of an offer to buy the securities.

In other recent news, Steakholder Foods has made notable advancements in the alternative protein sector as it moves into 2025. The company has secured its first purchase orders for its SH™ Fish and Beef premix blends, marking a significant step in its commercialization strategy. These orders are expected to support the launch of the "Whaat Meat?! by Steakholder" product line, which could help establish recurring revenue streams. Steakholder Foods has also received recognition at the Plant-Based World Expo in London, winning awards for its Salmon Patty, Fish Kebab, and Beef Alternative products.

The company has formed strategic partnerships to bolster its market presence, including collaborations with UMAMI Bioworks in Singapore and Vegefarm Co. Ltd. in Taiwan. Additionally, Steakholder Foods is focusing on the U.S. market, appointing Saar Bracha to lead this initiative and signing an agreement with Nexum Group. The company’s plant-based meat was recently showcased by celebrity chef David Burke in New York City. Financially, Steakholder Foods is maintaining a disciplined approach while investing in growth initiatives and anticipates generating revenue in the coming months. The company has also secured USD 490,000 in grant funding for innovation in 3D-printed hybrid fish technology.

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