Easy profit for institutional investors – Mit-tech investment with an immediate...

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Developing a process for the industrial printing of clean meat using a 3D printer, reports an investment of NIS 23.8 million for a group of investors led by Psagot Provident and Pension Funds, in addition to the Moore Investment House, which increased its holdings in the transaction, and Eyal Ravid from the Victory marketing network. The deal reflects a discount of more than 30% on the market share price.

As part of the offering, investors will be allotted 6,791,600 Mit-Tech shares at a price of NIS 3.5 per share, which after the allotment will constitute 8.57% of the company’s share capital. In addition, investors will be allotted non-tradable warrants in the amount of 50% of the allotted shares at an exercise price of NIS 5 per share for a period of two years, at a distance of about 45% of the money, and warrants in a similar amount of 50% of the allotted shares in the transaction. , A distance of about 74% of the money, for a period of two and a half years. The company does not provide an estimate of the value of the options, but according to BizPortal, the value of the options is estimated at NIS 9 million, which reflects an effective discount of 27% on the base price of the stock this morning.

In addition, investors will be given a defense mechanism for two years or until the listing of the company is listed on the Nasdaq, according to which as the company raises capital by issuing shares at a price of less than NIS 3.5 per share, investors will be allotted additional shares that reflect the price. Investors are expected to register immediately stands at more than 30%.

The company notes that the recruitment supports Mit-Tech’s strategic plan to accelerate R&D, shorten the process of reaching markets, including sales, by purchasing technologies for complementary products that are synergistic with Mit-Tech’s core business. The recruitment will be used, among other things, to complete the acquisition of Peace Of Meat – POM, a company that operates in the field of cultured fat products.

Gat Megiddo, VP of Investments at Psagot: “The investment in Mit-Tech is in line with our investment strategy in Impact companies, which we believe in the great economic potential they embody, along with the huge potential contribution to the environment. Mit-Tech has demonstrated since its merger as a public company in Tel Aviv. Is working to complete, which is promoting it to a foothold in the global meat substitutes market, which is booming. ”

Mit-Tech CEO, Sharon Pima: “We thank investors for expressing confidence in the company’s activity and vision. The acquisition enables the completion of the POM acquisition deal which adds an important tier to strengthen the R & D process and opens up new markets for us such as sales for hybrid products.”

How much will it cost in the end?
Asked by BizPortal about the production process and production costs of the future meat that Mit-Tech will produce (assuming that the company will successfully complete all the necessary developments for this purpose), Pima explained that currently, the raw material used by Mit-Tech to prepare the “ink” from it The company prints meat, which is a culture that contains liquids, sugars and proteins, which the company currently purchases for about $ 50 per kilo of steak.

However, the company is currently in the process of developing a similar culture derived from plants whose completion of development (as far as it is completed) is expected to significantly lower the cost of production to the level of $ 5-10 per kilogram of steak.

According to Pima, “Mit Tech’s strategy is to develop through additional subsidiaries technologies that will allow earlier entry into the market with hybrid products that combine vegetable protein and cultured fat. This can be referred to as ‘upgraded Beyond Meat’ and there is great market interest in this matter.”