REHOVOT, Israel - Steakholder Foods Ltd. (NASDAQ: STKH), a developer of alternative proteins and 3D printing technologies, announced today a significant move towards commercialization with a new agreement with Wyler Farm Ltd.
The partnership, which involves royalties and a raw materials supply, is set to generate Steakholder Foods' first commercial revenue as it shifts from research and development to market presence.
Under the agreement, Wyler Farm will produce a range of plant-based meat products using Steakholder Foods' premixes and production expertise. The production, which includes plant-based burgers, meatballs, and minced meat, is expected to start in Q3 2024, with revenues anticipated by the end of the year.
The collaboration brings together Steakholder Foods' innovative premix blends and advanced production technologies with Wyler Farm's established brand and production capabilities. This strategic move is aimed at leveraging both companies' strengths to capture market share in the burgeoning alternative protein sector.
Steakholder Foods' CEO Arik Kaufman expressed that this partnership is a pivotal milestone for the company, signaling the transition into revenue generation and the potential of their technology. Oleg Kulyava, CEO of Wyler Farm, echoed this sentiment, highlighting the expansion of their alternative protein product portfolio through the adoption of Steakholder Foods' technologies.
The companies are also discussing a follow-on agreement for the production of 3D-printed meat products, including Steakholder Foods' flagship Printed Beef Steak, which would further enhance their cooperation.
Steakholder Foods' approach to commercialization involves selling production machines and plant-based premix blends on a royalty basis. The company's premix blends are formulated to comply with food safety regulations, using ingredients Generally Recognized as Safe (GRAS).
The company's production machines, designed to integrate into traditional food factories, employ two types of 3D technologies aimed at replicating the texture of meat and fish, supporting large-scale production and adhering to European food safety standards.
Information in this article is based on a press release statement from Steakholder Foods Ltd.
InvestingPro Insights
As Steakholder Foods Ltd. (NASDAQ: STKH) forges ahead with its strategic partnership to enter the commercial stage, investors are closely monitoring the company's financial health and market performance. Recent data from InvestingPro shows a market capitalization of 27.21 million USD for the company, indicating its size in the competitive alternative protein sector. Despite the challenges, Steakholder Foods holds more cash than debt on its balance sheet, providing some financial stability as it transitions from R&D to sales.
An InvestingPro Tip highlights the company's liquid assets exceeding its short-term obligations, which may reassure investors of the company's ability to meet its immediate financial commitments. On the other hand, the company's stock has experienced significant price volatility, with a one-week price total return showing a decrease of 17.04%. This volatility is a reminder of the risks involved in investing in emerging markets and technologies.
For investors looking to delve deeper into Steakholder Foods' financials and market potential, InvestingPro offers additional insights and tips. With the use of coupon code PRONEWS24, interested parties can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access more comprehensive analysis and data. As of now, there are 12 additional InvestingPro Tips available which could further inform investment decisions regarding Steakholder Foods Ltd.
While the company's latest partnership marks a significant step towards revenue generation, it's important for investors to consider the broader financial context and market trends. For more detailed financial metrics and expert tips, visit https://www.investing.com/pro/STKH.
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