Food giant Tnuva is collaborating with the biotech leader Floristem and establishing a company in the field of cultured food. The company will leverage the cell growth technology developed at Floristem with an investment of $ 500 million. The intention: to launch the first raw product in 2023.
Tnuva will invest $ 7.5 million in the venture at a value of $ 40 million before the money, and with an option for an additional investment of $ 7.5 million over a period of one year. In the first phase, Tnuva will return 16% of the company and in the second phase 24%. Following the transaction, Floristem shares traded on the stock exchange jumped more than 30%. Tnuva CEO Eyal Melis said: “The transaction will cast content and a business base to promote the program of offering Tnuva shares on the stock exchange. The plan is in the planning stages, and at this stage there is nothing new in terms of the schedule.
“Just as Tnuva has made the field of alternative protein accessible in every home, so we intend to bring the good news of cultured food and protein substitutes,” he added. “We were first exposed to Floristem a few months ago. What we saw there is amazing, and we saw quite a few companies. The company focuses on growing cells and has built infrastructure without a brother and a bad one.”
Floristem will provide the technological envelope for the project and Tnuva the R&D envelope for the development of the final products for the consumer, and later also the distribution and marketing system. This is a unique technology that supports the production of cell-based products from various sources such as beef, chicken, fish and milk. cultivated.
The deal is part of the implementation of Tnuva’s strategy – to lead the field of protein substitutes in Israel and expand at the global level. Tnuva is already a partner in the establishment of advanced Podtech platforms, including the Podtech Retirement Start incubator in Kiryat Shmona. This year, Tnuva signed an agreement with the Swiss milk substitute giant Migros, and even invested $ 1 million last week in the issuance of the Re-Milk milk substitute project, which raised $ 11.3 million. Tnuva intends to continue to seek investments, especially in the field of milk substitutes, as part of the IPO plans on the stock exchange.
Floristem is a Haifa-based biotechnology company that focuses on cell healing and manufactures drugs based on cells extracted from the placenta after birth. Now they want to adapt the technology to the civilized food industry. Tnuva will distribute these products exclusively in Israel.
Floristem CEO Yaki Yanai said: “The project meets the need to provide sustainable technology-based solutions. The strategic partnership with Tnuva will help create leading food brands, led by cultured meat. Tnuva brought to the table what no investor can bring. “
Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.
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