Steakholder Foods to acquire Twine Solutions in strategic merger

REHOVOT, ISRAEL - Steakholder Foods Ltd. (NASDAQ:STKH), a micro-cap company with a market value of $1.01 million and currently showing weak financial health according to InvestingPro metrics, announced today it has signed a non-binding memorandum of understanding to acquire Twine Solutions Ltd., a digital thread and yarn dyeing technology company, alongside binding investment and convertible loan agreements.

Under the agreements, Twine’s shareholders are investing $1.74 million in Steakholder Foods at $7.00 per ADS, representing a 200% premium above Steakholder’s last closing price. The deal comes as Steakholder trades at a Price/Book ratio of 0.25 and faces significant cash burn challenges, according to InvestingPro data. Steakholder will use these funds to provide a loan to Twine, convertible into Twine’s senior share class, to accelerate Twine’s commercial expansion.

The investment is led by Gefen Capital, a controlling shareholder of Twine and a U.S.-Israeli investment fund targeting Israeli startups with disruptive technologies. With an EBITDA of -$8.01 million in the last twelve months, this strategic move could be crucial for Steakholder’s future growth, with analysts projecting significant revenue growth potential for the coming year.

Twine has developed a waterless digital thread and yarn dyeing system that allows businesses to bring dyeing processes in-house. The company has secured approximately $80 million in funding and established partnerships with companies including Zara and COATS Group.

The proposed combination would merge Steakholder’s 3D food printing technology with Twine’s digital manufacturing systems, potentially creating a technology company serving the food, automotive, and fashion industries.

"Twine brings not only a powerful IP portfolio and breakthrough technology, but also an active customer base that includes globally recognized brands," said Arik Kaufman, Chief Executive Officer of Steakholder Foods.

The acquisition remains subject to final due diligence, definitive agreements, approval by Steakholder shareholders, and customary closing conditions.

Steakholder Foods, founded in 2019, develops 3D-printing production machines for alternative proteins. Twine Solutions, founded in 2015, has installed more than 30 of its digital dyeing systems at brands, dye houses, and textile fulfillers.

This information is based on a press release statement from Steakholder Foods.

In other recent news, Steakholder Foods has announced an upcoming change to the ratio of its American Depositary Shares (ADSs) in relation to its ordinary shares. Effective April 28, 2025, the new ratio will be set at one ADS for every five hundred ordinary shares, compared to the current one-to-one hundred ratio. This adjustment effectively results in a one-for-five reverse ADS split for shareholders. The Nasdaq Capital Market will continue to list Steakholder Foods’ ADSs, with the Bank of New York Mellon handling the conversion. Shareholders will not need to take any action as the conversion will be managed automatically. Fractional shares resulting from the adjustment will be consolidated and sold by the depositary bank, with net proceeds distributed to ADS holders. The company has highlighted that no new ADSs will be issued as part of this adjustment. This development is part of Steakholder Foods’ ongoing business strategies and was reported in a press release.

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