One other Israeli firm from the wave of tech flotations on the Tel Aviv Inventory Change (TASE) in 2021 has reached the tip of the street as an impartial enterprise. Meals-tech firm NextFerm Applied sciences Ltd. introduced this week that it’s suspending operations, apart from a three way partnership in India. Following the announcement, the corporate’s share worth plunged 50%, giving it a market cap of NIS 7 million, a fall of 99.5% since its IPO.
NextFerm notified the TASE that following a choice by the board of administrators, the corporate’s 11 workers had been knowledgeable of the suspension and that administration will act to appreciate the corporate’s belongings and applied sciences to cut back commitments, so far as attainable to maintain the corporate’s exercise as a “going concern.”
NextFerm’s board of administrators have instructed administration to hunt a purchaser for the corporate’s exercise together with efforts to discover a purchaser with or with out the corporate’s exercise. The corporate has solely $230,000 in money towards commitments of $1.45 million, together with day-to-day commitments totaling $1.14 million.
Manufacturing of meals elements in yeast with out genetic engineering
NextFerm was based by Boaz Noy, Dr. Tzafra Cohen and Yossi Peled, all former workers of Enzymotec, the foodtech firm offered to Frutarom in 2017 for $210 million. NextFerm has developed know-how to create meals elements in yeast with out genetic engineering.
NextFerm’s lead product is a vegan protein produced in yeast. The corporate has produced a number of dozen tons of the product and claims in its experiences that there was quite a lot of curiosity in it from meals and dietary complement corporations worldwide. Nonetheless, the operation was loss-making, and increasing manufacturing capability to realize economies of scale has not been attainable with out further investments.
One of many issues that attracted traders to NextFerm’s IPO in January 2021 was the existence of two further merchandise, which had been alleged to diversify its dangers and produce it money till the primary product matures. Certainly one of them was a yeast-based baking enchancment product that was licensed. Advertising was offered to one of many main corporations within the discipline, however income weren’t important, and licensing was terminated in 2024. NextFerm additionally developed and marketed a meals complement that was offered within the US and Canada, however as a result of issue in elevating assets, it was unable to spend money on proving its medical efficacy or in its advertising and marketing.
NextFerm’s income final 12 months was solely $174,000, in contrast with $283,000 in 2023. Final 12 months’s loss was $5.3 million, and in whole the corporate has “burned” $37 million since its founding.
NextFerm due to this fact determined in 2024 to put off most of its then a number of dozen workers to chop bills to $2 million a 12 months, whereas sustaining its cooperation within the yeast discipline with Indian accomplice Kothari, which is accountable for manufacturing and advertising and marketing of the product with income shared equally. This cooperation ought to enable the corporate to exist, with bills of about $2 million a 12 months.
Within the report revealed this week, NextFerm defined that it was unable to promote gear valued at $900,000, and had due to this fact reached its present resolution, “Because of the ongoing issue in elevating financing to proceed the corporate’s operations.”
NextFerm CEO Boaz Noy informed “Globes,” “We, the corporate’s managers and workers, consider within the product and the know-how, however the food-tech discipline requires rather more funding and time than we are able to muster. Now our plan is geared toward a really restricted exercise that may be worthwhile rapidly. The meals market is already there, however the capital market shouldn’t be, and the scenario shouldn’t be significantly useful. We’re looking for options, and if there are any, we are going to report on them.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on April 2, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
