Can cultivated meat provide a solution to the vast issues surrounding the production of meat? MeaTech believes that it can, and they have the cultivated meat technologies to do it by simplifying the meat supply chain, reducing carbon footprint, and preventing the slaughtering of animals. Recent expansion into the U.S. and impressive quarterly financials indicate that MeaTech has positioned itself as an emerging leader in the cultivated meat industry.

About MeaTech

MeaTech (Nasdaq: MITC) is a deep-tech food company that is developing an alternative to industrialized farming with delicious, high-quality, real meat products that are safe and nutritious. The first mover in the cultured meat revolution is circumventing the ethical and environmental issues surrounding conventional animal husbandry with integrated 3D printing technology. MeaTech does not produce plant-based products but mimics natural biological processes to create real meat tissue.

MeaTech aims to increase food safety through the development of a fully automated, clean, proprietary process for cultivated meat manufacturing in a controlled, sterile environment. The production facilities of the company will not house a single animal and will have robust integrated monitoring systems and minimal human interaction, reducing the risk of pathogen contamination. MeaTech will offer a sustainable solution for the production of beef, chicken, and pork products.

Expansion into the United States

MeaTech grew its team in Israel by over 50% in 2021 and recently moved to new, more spacious headquarters in Rehovot, Israel. The Israeli facility allows the company to enhance research and development activities of cultured meat and bioprinting technology and houses a tasting kitchen. To accommodate additional growth, MeaTech announced that its fully-owned Belgian subsidiary, Peace of Meat BV, will build a 21,530 sq. ft. pilot plant in Belgium, with construction expected to commence in 2022.

MeaTech announced its expansion into the U.S. on March 8, 2022. The new space in California will house activities in R&D, investor relations, and business development and will help MeaTech reach new milestones in becoming a sectorial leader.

The Co-Founder and CEO of MeaTech, Arik Kaufman, commented on the announcement, stating that “expanding into the US is another important step in accelerating our go-to-market strategy and it will leverage the expertise we’ve been building since 2019. We anticipate that our new space will serve as a welcoming environment for our North American investors.”

Rapid Financial Growth

MeaTech experienced rapid growth in 2021 and continues to generate impressive financial data in 2022. For the year ending December 31, 2021, the net cash flow provided by investing activities increased by 398%, contributing to a year-end balance of cash and equivalents equaling $19.2 million. The company’s total non-current assets increased to $18.5 million, driven mostly by the acquisition of Peace of Meat (POM), a deal that was finalized in February 2021.

MeaTech entered 2022 with a significantly increased total capital of $37.6 million, following the implementation of several growth strategies. In October of 2021, MeaTech partnered with the BlueSoundWaves collective, led by Ashton Kutcher, Guy Oseary, and Effie Epstein, with the goal of accelerating growth and potentially commercializing MeaTech’s proprietary cultured meat production technologies. More recently, in February 2022, MeaTech reported promising results with muscle stem cell differentiation after developing a novel technology process where muscle cells are fused into significant muscle fibers that better resemble those in whole cuts of meat.

Investment Opportunity Analysis:

The cultivated meat industry is growing at a very fast pace and MeaTech is playing a central role in it. Allied Market Research   reported that the global cultured meat market size is expected to reach $2,788 million by 2030, registering a CAGR of 95.8% from 2022 to 2030. MeaTech’s investments in technology and strategic M&A have shown that the company is positioning itself ahead of the growing industry for long-term growth and success.

In March 2021, the company raised $28 million in an initial public offering of American Depository Shares (ADSs) on the Nasdaq Capital Market, making MeaTech the first cultured meat company to be publicly traded in the United States. In August 2021, the Company voluntarily delisted its ordinary shares from the TASE to internationalize MeaTech’s investor and public relations efforts globally.  On 03/23/2022, the stock price on the Nasdaq was at $5.02 per share.

MITC  Facts:

Market Cap 75.81 M

Previous Close $5.02

EPS (ttm) -1.38

Volume 26.06k

Average Volume 54.79k

Enterprise Value 50.55 M

52-week high 9.99

52-week low 4.35

After a 52-week high of $9.99, the current share value reflects a stock that is undervalued and experiencing the start of a potential rebound and recovery. As the share value again reaches the resistance point seen on 09/30/2021 of $6.09, MeaTech stock offers investors a strong potential upside.

TradingView chart at March 24 2022 TradingView chart at March 24 2022 Photo: Screenshot

What does this mean for investors?

Given the massive growth MeaTech is approaching, the current stock price may represent a unique opportunity for growth-focused investors. Clearly those who eye new mega trends would argue that MeaTech is substantially undervalued.

Final take:

There is no doubt that the current squeeze on agriculture and natural resources, along with rising trends such as climate change, will accelerate scarcity in traditional animal meat. Add to that the surging demand for ESG supportive investments, and it is hard to imagine any further delay in the rise of new food alternatives that rely on scientific innovation.