Plant-based Meats on Course to Become an $85 Billion Market Opportunity
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, March 4, 2020 /PRNewswire/ -- Plant based foods are becoming a booming business. Retail sales in the U.S. for such food grew 11% to $4.5 billion over the year leading up to July 2019, reports Entrepreneur, as compared to just 2% growth of the U.S. retail food market. Better, the U.S. plant based meat industry was worth $801 million, becoming the third fastest category of plant based foods behind milk. And, by 2025, the market could be worth well over $27.9 billion, according to Markets and Markets. Better still, UBS analysts say the alternative meat market could grow 28% a year to $85 billion in the next 10 years, as reported by Business Insider. Euromonitor estimates that the market for plant-based foods could be worth $2.5 billion by 2023, reports CNBC. Even Disney is jumping on the bandwagon, having just announced it's expanding its selection of plant-based food items at theme parks and on its cruise line. It's all creating sizable opportunity for companies such as Else Nutrition Holdings Inc. (TSX-V: BABY) (OTCQB: BABYF), Burcon NutraScience Corp. (TSX:BSU) (OTCQB:BUROF), McDonald's Corporation (NYSE:MCD), Kellogg Company (NYSE:K) and Tyson Foods Inc. (NYSE:TSN).
Else Nutrition Holdings Inc. (TSX-V: BABY) (OTCQB: BABYF) BREAKING NEWS: Else Nutrition Holdings Inc., a developer of novel plant based infant nutrition just announced that it has closed its previously announced non-brokered private placement including a strategic investment with NewH2 Limited ("New H2"), a wholly owned subsidiary of Health and Happiness (H&H) International Holdings Ltd, a Hong Kong Stock Exchange company (HK:1112). Pursuant to the private placement the Company issued an aggregate of 12,383,900 units (the "Units") at a price of C$0.646 per Unit for gross proceeds of C$8,000,000. Each Unit consists of one common share and 0.25 share purchase warrants, with each whole warrant (a "Warrant") entitling the holder to acquire one additional common share of the Company at an exercise price of C$0.969 per share for a period of thirty (30) months from the closing date. The private placement is previously announced in the Company's news release dated February 19, 2020. NewH2 purchased 8,900,928 of the Units, representing approximately 11.15% of the Company's issued and outstanding common shares. All securities acquired by NewH2 are subject to a voluntary twelve (12) month hold period. NewH2 and the Company have entered into an investor rights agreement pursuant to which NewH2 is granted certain rights to maintain its percentage holdings of common shares in the Company through participation in future financings, and the right to hold one board seat on the Company's board of directors. Accordingly, Mr.Akash Bedi has been appointed as a director of the Company, effective immediately.
The company intends to use the proceeds from the private placement to accelerate its anticipated launch in the United States scheduled for the second quarter of 2020, to enhance its toll manufacturing capabilities, to build its distribution relationship with Health and Happiness (H&H) Hong Kong Limited, the parent company of New H2 and expedite sales in the new territories, and to undertake additional marketing initiatives, as well as for general working capital. All securities issued in connection with the private placement are subject to a four (4) month hold period pursuant to the policies of the TSX Venture Exchange and applicable securities laws. Pursuant to the private placement, NewH2 acquired 8,900,929 common shares of the Company, representing approximately 11.15% of the issued and outstanding common shares of the Company on a non-diluted basis, and 2,225,232 warrants to purchase common shares of the Company, which if exercised, would result in NewH2 holding approximately 13.94% of the issued and outstanding common shares of the Company on a partially diluted basis, assuming no further common shares of the Company have been issued.
Immediately prior to the private placement NewH2 did not own any common shares of the Company. Following the private placement NewH2 now owns 8,900,929 common shares of the Company, representing approximately 11.15% of the issued and outstanding common shares of the Company. The private placement has resulted in a 11.15% change in NewH2's ownership of common shares on a non-diluted basis. NewH2 has no present intention to dispose of or acquire further securities of the Company. NewH2 may, in the future participate in financings and/or acquire or dispose of securities of the Company in the market, privately or otherwise, as circumstances or market conditions warrant.
Other related developments from around the markets include:
Burcon NutraScience Corp. (TSX: BSU) (OTCQB: BUROF) confirmed the closing of its previously announced bought deal offering for gross proceeds of C$11,500,690. Co-lead underwriters Canaccord Genuity Corp. and Beacon Securities Limited, together with Eight Capital and Paradigm Capital Inc. purchased from Burcon, on a bought deal basis, 6,452,000 units of the Company at a price of C$1.55 per Unit for gross proceeds of C$10,000,600. The Underwriters also exercised the over-allotment option in full and purchased an additional 967,800 Units at a price of C$1.55 for additional gross proceeds to the Company of C$1,500,090. Each Unit is comprised of one common share of the Company and one-half of one Common Share purchase warrant. Each Warrant will be exercisable to acquire one Common Share at an exercise price of $2.00 for a period of 24 months from the closing of the Offering. The net proceeds of the Offering will be used by the Company for research and development activities, the maintenance, strengthening and expansion of its patent portfolio and general corporate purposes. "We are pleased to have completed this bought deal financing," said Johann F. Tergesen, Burcon's president and chief executive officer, adding, "The funds will enable Burcon to further accelerate our key opportunities and the development of our nutritious and great-tasting plant-based proteins."
McDonald's Corporation (NYSE: MCD) announced the final rosters for the 2020 McDonald's All American Games, celebrating the next generation of basketball stars and their hustle in the pursuit of achieving greatness. Forty-eight high school seniors – comprising the top 24 girls and 24 boys in the country – were selected by a committee of basketball experts from more than 900 nominated players. The players will join a prestigious and historic group of basketball legends when they take the court for the 43rd McDonald's All American Games on Wednesday, April 1, at the Toyota Center in Houston. The Games will be telecast live on ESPN2 and ESPN.
Kellogg Company (NYSE:K) announced that its Board of Directors declared a dividend of $0.57 per share on the common stock of the Company, payable on March 16, 2020, to shareowners of record at the close of business on March 3, 2020. The ex-dividend date is March 2, 2020. This is the 381st dividend that Kellogg Company has paid to owners of common stock since 1925.
Tyson Foods Inc. (NYSE:TSN) has hired an outside service provider to accelerate the transformation of the company's digital technology capabilities and reduce costs. "The speed and scale of new technology presents a huge opportunity for us," said Scott Spradley, chief technology officer for Tyson Foods. "While we've made significant progress over the past two years enhancing our computing systems and digital capabilities, we need to drive more rapid improvements in our digital transformation to remain competitive." The company's information technology (IT) leaders went through a year-long review that led to a decision, supported by the company's senior leadership. It involves entering into a strategic relationship with a global digital services provider with offices across the U.S. and other parts of the world. This means Tyson Foods will shift some of its current IT roles and responsibilities to the outside service provider. "While it's the right thing to do for the business, it's a very difficult decision," Spradley said. "That's because it will result in organization changes in our information technology team, including some job loss."
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