Steakholder Foods Ltd. (Nasdaq: STKH) has announced a significant financial boost through two strategic funding arrangements totaling $9.25 million, strengthening its position in the alternative proteins and 3D printing technology sector.
Private Placement Details
The company has entered into definitive agreements with technology investor Alumni Capital LP for a private placement valued at $1.25 million. The deal includes 985,028 American Depositary Shares (ADSs) priced at $1.269 per ADS, with each ADS representing 100 ordinary shares. Additionally, the agreement includes warrants to purchase an equivalent number of ADSs at $2.00 each, exercisable immediately and valid for five years.
Equity Line of Credit Structure
Simultaneously, Steakholder Foods secured an $8 million equity line of credit (ELOC) with Alumni Capital LP. This flexible funding mechanism allows the company to maintain control over the timing and volume of equity sales, strategically managing capital needs while minimizing dilution for existing shareholders.
Strategic Impact and Market Position
"Today's agreements with Alumni Capital represent a key milestone in our growth strategy," stated Arik Kaufman, Chief Executive Officer of Steakholder Foods. "They are designed with the best interests of our shareholders in mind, offering immediate funds for our continued strategic growth, as well as offering us the ability to access capital efficiently while mitigating dilution."
The investment reflects growing confidence in Steakholder Foods' innovative approach to alternative proteins. The company, founded in 2019, has developed proprietary 3D-printing production technologies capable of replicating complex textures of traditional meats, including beef steaks, white fish, shrimp, and eel.
Technology and Product Development
Steakholder Foods' technology platform includes specialized 3D-printing production machines and proprietary premix blends formulated from high-quality raw ingredients. These innovations enable manufacturers to produce alternative protein products that match consumer expectations for taste, texture, and appearance while offering sustainable alternatives to traditional meat and seafood production.
The company is also advancing its research into cultivated cells integration, positioning itself for future developments in food technology. This forward-looking approach has attracted positive attention from investors, as evidenced by Alumni Capital's commitment.
"We are pleased to partner with Steakholder Foods as they continue to innovate and grow," commented Ashkan Mapar, Portfolio Manager at Alumni Capital. "This agreement reflects our confidence in the Company's vision and management team, and we look forward to supporting their efforts to drive sustainable value creation."
Financial Implementation
The private placement is expected to close on February 28, 2025, subject to customary closing conditions. The company plans to use the net proceeds as working capital for general corporate purposes, supporting its ongoing research and development initiatives in alternative protein technologies.
