German plant-based food producer Veganz Group AG has signed a Securities Purchase Agreement with Global Corporate Finance LLC (GCF), securing equity financing of up to €10 million.
The funding will allow Veganz to scale up the production of Mililk, an innovative milk alternative supplied in the form of 2D-printed sheets that can be blended with water. By optimizing and automating manufacturing processes, the company hopes to increase its capacity for the production of milk alternatives by a factor of five to meet growing demand. Veganz will also use the funds to increase the output of Peas on Earth, a pea protein-based meat alternative.
The contract with GCF allows for a flexible use of the financial resources over a 30-month period. Funds will be raised by issuing new shares based on the valuation determined at the time of the retrieval.
A capital increase subscribed by VeGreat LLC in September 2023 will not be affected by the agreement with GFC and will proceed in parallel. VeGreat acquired shares in Veganz after the two companies announced a collaboration to launch a vertical farming project for protein crops in Dubai.
Award-winning milk alternative
Veganz first commenced the production of Mililk in July 2023, and began supplying the product to German retailer REWE this April. The patented milk alternative can now be found nationally under the brands Food For Future and Rewe Bio in more than 3,700 Rewe stores and 2,000 Penny locations.
In June, Veganz announced that it had secured funding from the state of Brandenburg to expand its production capacities. Just a month later, the company said it would use approximately 1,000 square metres of new space at its site in Ludwigsfeld, Germany, to increase its production of 2D-printed milk alternatives. The expansion will enable a daily production capacity of 50,000 litres of Mililk.
According to Veganz, Mililk saves around 88% in packaging materials and at least 80% in weight compared to regular milk alternatives, making it highly sustainable. Last month, the product won Food Innovation of the Year at the prestigious Superior Taste Award.
“In less than 12 months, we have passionately brought an innovative product to market maturity with which we will once again change the food industry for good,” said Jan Bredack, founder and CEO of Veganz Group AG. “Our focus: love for the climate, because that’s what the product maximises.”
