As part of a strategic move aligned with its Liquidity Improvement Plan, Benson Hill, a food tech company specializing in plant genetics, has finalized the transfer of ownership for its soybean crush facility in Seymour, Indiana. White River Soy Processing, LLC, is the acquiring entity, with the agreement amounting to approximately $36 million in total gross revenue.
The Liquidity Improvement Plan was initiated after Benson Hill received a non-compliance notification from the New York Stock Exchange after the company’s stock had traded below $1 per share for a consecutive 30-day period. The stock price has experienced a notable decline since August, dropping to as low as $0.15 per share on October 31. As of today, the stock has shown some recovery, reaching $0.40 per share.
“The sale of the Seymour crush assets […] further enables disciplined capital allocation”
Benson Hill revealed the details of its Liquidity Improvement Plan, which included transferring ownership of this facility as part of its planned divestments in production facilities and transitioning to an asset-light business model. Further objectives include enhancing its liquidity position, debt reduction, and streamlining operating and working capital expenses while continuing to preserve its valued relationships with local farmer partners in Indiana.
Notably, the company aims to focus on expanding its presence in the broadacre animal feed markets, seeing it as a “near-term opportunity,” complementing its ongoing work in human food ingredients.
Deanie Elsner, the CEO of Benson Hill, commented on the development, stating, “The sale of the Seymour crush assets sharpens our focus on future growth and further enables disciplined capital allocation as part of our three-part Liquidity Improvement Plan. Under our ownership, the Seymour team has achieved record-breaking safety and production records, and we are extremely grateful for their efforts. We look forward to working with White River to seamlessly meet the needs of our farmers, customers, and team members.”
Honoring current contracts
The transition is expected to involve the transfer of approximately 30 team members to White River to ensure a smooth shift for customers and stakeholders. Benson Hill also states it will honor its 2023 and 2024 contracts with farmer partners who deliver grain to the Seymour facility. Both parties anticipate finalizing a grain supply and licensing agreement to continue processing Benson Hill’s proprietary Ultra-High Protein (UHP) soybeans through the facility.
Elsner emphasized Benson Hill’s adaptability, commenting, “Benson Hill has the agility to persevere. Based on our ongoing strategic review, we believe the strengthening of our financial foundation, moving to an asset-light business model, and introducing our innovations into attractive broader end markets is the most feasible path forward for Benson Hill.”
