Israeli food-tech MeaTech 3D, a developer of 3D bioprinted cultivated meat, recently announced its pricing of a US$25M initial public offering of American depositary shares. In addition, the company has received approval to be listed on the U.S. Nasdaq capital market.
Ness Ziona-based company Meat-Tech 3D focuses on developing 3D printing technology that can be helpful for those food retail companies that want to produce alternative proteins without the need for any animal cruelty.
Back in November of last year, the company had hinted that it would be the first cell-based company to go public in the U.S., and just recently, MeaTech confirmed this news by announcing the pricing of its previously announced IPO of 2,427,185 American Depositary Shares (“ADSs”), with each ADS representing 10 ordinary shares, at an IPO price of US$10.30 per ADS, for gross proceeds of approximately US$25M.
Apart from this, the company has allowed the underwriter a 30-day option to buy up to an additional 364,077 ADSs at the IPO price, with less underwriting discounts, and commissions. The ADSs have been approved for listing on the Nasdaq capital market, meaning trading is expected to begin under the ticker symbol “MITC.”
Before this, MeaTech was already publicly traded on the Tel Aviv Stock Exchange since 2019, making it the only public cell-based meat company to date.
Just a few months ago, the company had announced a US$7 million funding round that was led by Tel Aviv-based Psagot Provident and Pension Funds, with participation from More Investment House and other undisclosed private investors. This capital would help the company to accelerate its R&D, especially into hybrid alternative protein products.
Sharon Fima, CEO of MeaTech, said: “The investment round enables us to progress the recently announced Peace Of Meat acquisition, strengthening an important part of our R&D and opening up new markets such as that for hybrid products.”
Using this capital, MeaTech acquired Peace of Meat for US$1.19 million late last year, a Belgian B2B startup producing cultivated fat and texturing ingredients that was also selected as one of Big Idea Ventures’ (BIV) cohorts in 2020 and has created a proprietary stem-cell-based technology to manufacture cruelty-free animal fats, such as those from cattle, chicken or geese.
MeaTech intends to use the net proceeds from its IPO to advance its program to develop commercial technologies to produce alternative foods, as well as strategically acquire startups that are complementary.
However, MeaTech sank as much as 23.8% in its first trading day following the U.S. IPO-it fell as low as US$7.85 in early Nasdaq trading, down from its US$10.30 price debut- and witnessed more sale of ADS than expected, at a price of US$10.30
Several alternative protein companies are looking to go public in the near future. Back in August of last year, Josh Tetrick, the co-founder and CEO of Eat Just, the company behind the famous plant-based liquid egg that is also creating cell-based products, said that he plans to launch an IPO once it reaches profitability with an end-of-2021 timeline in sight.
In December, SavorEat, an Israeli food tech that develops 3D-printed plant-based meat alternatives, raised NIS 42.6 million (US$13 million) in its IPO on the Tel Aviv Stock Exchange (TASE), making it the first publicly listed company of its kind on the exchange.
Most recently, Oatly, the Swedish food tech behind one of the most famous plant-based milk brands on the market, confidentially filed to go public and according to a report from Bloomberg, Oatly could be seeking a value of US$10 billion in its U.S. IPO.
Lead image courtesy of MeaTech.