The Israeli food-tech company Bio Honey is developing an industrial process for the production of cultured honey under laboratory conditions without bees.
The private equity allotment involves controlling shareholder Adi Zim, existing shareholders and new investors. It will be executed at a share price of NIS 6.5, a discount of about 7% on the closing price yesterday, and in addition to each share an option will be allocated at an exercise price of NIS 8.5 for two years. The company stated that if it goes public on a foreign stock exchange in the next two years or there is an acquisition or merger, investors will be able to choose whether to exercise their options.
It should be noted that although the raising price is lower than the share price in the market now the stock jumps by 6% to a price of 749 cents. The reason for the jump may be what the market perceives as an expression of trust on the part of the controlling shareholders, and it is also possible that the relatively high exercise price of the option reflects optimism in the eyes of investors regarding the future price of the stock.
About two weeks ago, the company reported on its success in producing artificial royal jelly protein in the company’s laboratories. This protein is found in pure honey and is used in many industries in addition to the medicinal properties that characterize it. Following the announcement the stock jumped nearly 30% in two days. The company is now taking advantage of the momentum to raise additional capital, and despite the dilution of investors, the stock is responding positively, as mentioned.
Mr. Ophir Dbesh, CEO of Bio Dbesh, said: “The raising of capital is an expression of confidence of the existing shareholders in Bio Dbesh and in the progress of the development of the company’s products since the initial raising. The capital will be used by the company to accelerate the development, recruitment of personnel and the establishment of the initial pilot system for the production of cultured honey in quantities of hundreds to tons per week in the coming months. “
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