Biotech Pluristem, Israel-Based Tnuva Collaborate On Cultured Food Platform

Pluristem Therapeutics Inc PSTI and Tnuva Group have collaborated to develop, manufacture and commercialize cultured cell-based products for the food industry. 

• Tnuva Group is the largest food producer in Israel and the Israeli player in the field of alternative dairy and protein products. 
• The collaboration started with the incorporation of a new company (NewCo) that will receive exclusive, global, royalty-bearing licensing rights to use Pluristem's proprietary technology in the field of cultured meat.
• 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.
• Pluristem will support the establishment, research, and development activities of NewCo.
• Tnuva will provide the R&D platform to develop consumer products and receive preferred marketing rights of any developed NewCo products in Israel.
• NewCo intends to present its technology Proof of Concept in 2022 to launch its first raw cultured meat product in 2023.
• As part of the collaboration, the Parties may expand the partnership to include cultured dairy and cultured fish products by establishing separate, new ventures.
• Price Action: PSTI shares are up 21.80% at $1.79 during the premarket session on the last check Monday.