© Reuters. FILE PHOTO: Unattainable Meals plant-based beef merchandise are seen on the meat part of a sequence grocery store in Hong Kong
By Anirban Sen and Joshua Franklin
(Reuters) – Unattainable Meals Inc is getting ready for a public itemizing which may worth the U.S. plant-based burger maker at round $10 billion or extra, in line with folks aware of the matter.
This is able to be considerably greater than the $4 billion the corporate was value in a non-public funding spherical in 2020. It might spotlight rising demand for plant-based meat merchandise, pushed by environmental and moral issues amongst shoppers.
Unattainable Meals is exploring going public via an preliminary public providing (IPO) within the subsequent 12 months or a merger with a so-called particular objective acquisition firm (SPAC), the sources stated.
The Redwood (NYSE:) Metropolis, California-based firm has labored with a monetary adviser to assist handle discussions with SPACs after receiving provides at a profitable valuation, the sources stated. Going public via a SPAC may dilute present Unattainable Meals shareholders, nevertheless, by a better extent than an IPO, the sources added.
A SPAC is a shell firm that raises funds in an IPO with the intention of buying a non-public firm. For the corporate being acquired, the merger is an alternate method to go public over an IPO.
Merging with a SPAC has emerged as a preferred IPO different for firms looking for to go public with much less regulatory scrutiny and extra certainty over the valuation that can be attained and funds that can be raised.
The sources, who requested as a result of the discussions are non-public, cautioned that the deliberations are topic to market circumstances and the corporate might choose to pursue one other non-public fundraising spherical.
A spokeswoman for Unattainable Meals declined to remark.
Unattainable Meals, whose backers embody enterprise capital traders Khosla Ventures and Horizons Ventures, in addition to celebrities like tennis star Serena Williams (NYSE:) and rapper Jay-Z, has up to now raised $1.5 billion within the non-public market, in line with PitchBook information.
In 2020, U.S. plant-based retail gross sales hit $7 billion, up 27% 12 months on 12 months, in line with a report by the Good Meals Institute and the Plant-Based mostly Meals Affiliation (PBFA).
Based in 2011, Unattainable Meals sells its meat-free burgers and sausages in grocery shops and in addition has partnerships with the likes of Burger King and Disney.
The variety of places the place Unattainable Meals’ burgers are bought has elevated up to now 12 months to greater than 20,000 from 150 shops, the corporate has stated.
Shares of rival Past Meat (NASDAQ:) Inc are buying and selling greater than 400% above its IPO worth from 2019.
Unattainable Meals Chief Monetary Officer David Lee stepped down earlier this 12 months to affix indoor farm builder AppHarvest, with David Borecky presently serving as the corporate’s interim CFO.
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