The Tnuva Group, Israel’s largest food conglomerate, just announced the launch of a collaboration with local biotechnology company Pluristem to develop, manufacture and commercialize cultivated products for the food industry.
The collaboration started with the incorporation of a new company called NewCo that will receive exclusive, global, royalty bearing licensing rights to use Pluristem’s proprietary technology and know-how to be used in the field of cultured meat.
The Tnuva Group will invest $7.5 million in NewCo, according to a pre-money valuation of $40 million, with the option to invest up to an additional $7.5 million over a period of 12 months following the closing. NewCo will use its own funding and resources to promote its mission, with Tnuva providing the R&D platform to develop consumer products, while Pluristem will support the establishment, research and development activities of NewCo pursuant to a services agreement.
According to both Parties’ estimates and plans, NewCo intends to present its technology Proof of Concept in 2022, with the goal of launching its first raw cultured meat product in 2023. As part of the collaboration, the Parties may expand the collaboration to include cultured dairy and cultured fish products by establishing separate, new ventures.
Speaking on the collaboration, Haim Gavrieli, Chairman of Tnuva Group, commented: “Our collaboration with Pluristem is part of the execution of Tnuva Group’s strategy and vision. Tnuva strives to lead the alternative protein industry in Israel and to continue to expand in the industry on a global scale. We chose to collaborate with Pluristem because we believe it owns one of the most advanced cell production technologies in the world. We expect the collaboration between the companies to revolutionize the cultured food industry and develop the next generation of alternative proteins.”