- The cultivated meat market could be worth $25 billion within the next decade, driven by significant production cost reductions.
- Collaborations with leading companies and investors like Tyson, Nutreco, Temasek, and SoftBank highlight CULT’s industry influence.
- Projects like Jellatech’s collagen production and Further Foods’ cell-cultivated chicken feeding trials demonstrate CULT’s commitment to pioneering sustainable food solutions.
CULT Food (CSE:CULT, OTC:CULTF, FRA:LN0) ‘s stock price has been on fire during the last couple of weeks. Nevertheless, the company’s valuation has now settled around the $0.14 mark. Now, it appears to be a good time to either accumulate, or enter a position thanks to multiple factors: the company’s fundamentals, progress, and more importantly, the next leg up. Here are the reasons why you should pay attention to the company now.
About CULT Food
CULT Food Science aims to revolutionize the food industry by developing brands that prioritize global well-being and investing in cutting-edge cellular agriculture companies worldwide. Their international venture portfolio spans across four continents, encompassing 18 early-stage investments, which highlight a promising and diverse range of cellular agriculture innovations.
The company is dedicated to sourcing the finest ingredients by identifying companies globally that use cellular agriculture to produce sustainable, slaughter-free, and nutritionally rich food inputs. When such companies are discovered, CULT invests in them, securing equity stakes and forming strategic partnerships focused on ingredient supply.
Why Does Investing in CULT Mean Diving in a Huge Market Opportunity?
The cultivated meat sector is set for exponential growth, with projections indicating it could be valued at $25 billion within the next decade, as per a McKinsey report. Companies have drastically slashed production costs by 99% since the first prototypes. In late 2020, diners in Singapore, the first country to approve cultivated meat, enjoyed crispy sesame chicken derived from animal cells. In the U.S., regulatory frameworks are being established to manage this emerging product, while the EU has earmarked significant funding for further research. The industry, still in its infancy with fewer than 100 startups, attracted around $350 million in 2020 and approximately $250 million in 2021. This surge in investment has seen contributions from major animal-protein firms like Tyson and Nutreco, as well as prominent investors such as Temasek and SoftBank. Market forecasts vary, estimating values between $5 billion to $25 billion based on different growth scenarios.
- Jeff Bezos-backed fund grants $30 million to N.C. State for lab-grown protein research.
- USDA approves lab-grown meat for sale in the U.S.
- Brazil’s JBS commences construction of a lab-grown beef facility in Spain.
- Bill Gates and Richard Branson advocate lab-grown meat as the future of food.
The pet food industry, particularly in North America, is also experiencing robust growth. This is driven by a faster ingredient approval process and a consumer shift towards healthier options. In 2023, U.S. pet food sales hit $64.4 billion, a 10.8% rise from the previous year, reflecting pet owners’ growing preference for sustainable and nutritious food options. The U.S. represented over 48% of the global pet food market in 2023. The regulatory pathway for new ingredients in pet food is notably more streamlined compared to human food, enabling quicker market entry.
Recent Updates from the company
July 25
The company announced an extension of its non-brokered private placement offering, initially revealed on June 10, 2024. This gives potential investors more time to get involved in this opportunity.
The first phase of the offering closed successfully on July 5, 2024, raising C$1,426,500 from the sale of 5,706,000 Units at C$0.25 per Unit. The second phase will now stay open until around September 6, 2024.
Overall, the offering aims to sell up to 10,000,000 Units at C$0.25 each, targeting up to C$2,500,000 in total proceeds. Each Unit includes one common share and one transferable warrant, allowing the purchase of an additional share at C$0.35 within two years.
- Extended deadline to September 6, 2024, for more participation.
- First phase raised C$1,426,500.
- Each Unit priced at C$0.25, with a warrant to buy another share at C$0.35.
July 18
Further Foods Inc., a subsidiary of CULT, is finalizing the design for feeding trials to gain regulatory approval for its dog food products containing cell-cultivated chicken. This innovative ingredient has not yet been approved for animal consumption. Partnering with Dr. Sarah Dodd, Further Foods is developing a target animal safety (TAS) study to ensure the safety and efficacy of cell-cultivated chicken in Noochies! formulations.
The feeding trial design protocol will be submitted to the FDA this month, with an expected response within 45 days.
- Planned to start in Q4, subject to FDA approval.
- Further Foods is uniquely engaged with the FDA on cultivated chicken dog treat trials.
- Dr. Sarah Dodd is ensuring the trial design meets FDA standards.
July 16
CULT’s venture arm company, has been chosen to participate in the new $30M research center funded by the Bezos Earth Fund at North Carolina State University (N.C. State). The Bezos Center for Sustainable Protein is dedicated to advancing sustainable protein production.
- Jellatech is joining the Bezos Center for Sustainable Protein at N.C. State to spearhead cellular agriculture research.
- This $30M initiative will unite academia and industry to develop sustainable protein alternatives.
- Jellatech’s method of producing functional, native collagen without using animals perfectly aligns with the center’s mission.
The Bezos Center for Sustainable Protein, established at N.C. State, aims to be a biomanufacturing hub for environmentally friendly, healthy, tasty, and affordable dietary proteins. The center will foster collaboration among academic and industry partners to innovate, develop, and bring new technologies to market, train the next generation of industry professionals, and understand consumer preferences for protein.
Conclusion
With its stock price steady around $0.14, now might be an opportune time to accumulate or start a position in CULT Food Science (CSE:CULT, OTC:CULTF, FRA:LN0). The company offers a significant market opportunity as the cultivated meat sector is projected to grow exponentially, potentially reaching $25 billion within the next decade. CULT’s strategic investments and partnerships place it at the forefront of the cellular agriculture industry. The company is advancing rapidly, and thanks to its venture arm companies, revenue is expected to come swiftly, driving the company’s market cap up.
Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website. He then contributed to building Guerilla Capital, a Capital Markets company and FirstPhase Capital where he was head of research. At10xAlerts, he writes articles and conducts interviews on many sectors, including breaking news technology, metals & mining markets.
