Steakholder Foods signs agreement to acquire Twine Solutions

Steakholder Foods (STKH) signed an agreement to acquire Twine Solutions, a company in the digital dyeing of thread and yarn, to add Twine’s technological abilities to its existing digital printing abilities in the foodtech industry. According to the acquisition agreement, upon closing, Twine’s shareholders will receive a minority stake in Steakholder Foods in return for all outstanding shares of Twine on a fully-diluted basis. This stake will include approximately 25% of Steakholder’s outstanding equity, after allocation, plus milestone warrants, which could increase the minority stake to up to 35% upon achievement of certain substantial milestones. The proposed acquisition of Twine by Steakholder would create a global digital technology powerhouse with the capability to revolutionize multiple traditional industries including Steakholder’s existing food industry, as well as creating a new paradigm in the fashion and textile through advanced manufacturing and supply chain solutions provided by Twine. The acquisition is designed to combine two transformative platforms: Steakholder’s pioneering 3D food printing technology and Twine’s revolutionary digital dyeing systems. Twine’s impressive technological achievements include developing the world’s first digital thread and yarn dyeing system that uses a waterless process, protected by 10 granted and pending patents. Twine’s innovative solution empowers businesses to bring their thread dyeing processes in-house, dramatically reducing time to market while enabling unprecedented customization for sewing, knitting, and embroidery applications. Together, the companies intend to explore commercial applications across a range of industries, with an eye on speed, personalization, sustainability, and scale. Ahead of the proposed purchase, Twine’s shareholders invested in and provided a convertible loan in an aggregate amount of $1.74M to Steakholder Foods at substantial premium investment/conversion prices per ADS. The convertible loan would be converted into Steakholder equity following the closing of the acquisition. Steakholder used these proceeds to provide its own loan to Twine Solutions, convertible into Twine’s shares, to accelerate Twine’s commercial expansion. This loan is likewise expected to be converted into Twine equity following the closing of the acquisition. Twine’s primary shareholder is Gefen Capital. The acquisition remains subject to approval by Steakholder shareholders at a general meeting and customary closing conditions.