Food tech company Benson Hill announced plans to improve its financial position and accelerate its transition into what it calls an “asset-light business model” with a focused expansion in to broad care animal feed markets, focusing on poultry swine and pet food.
The near-term opportunity in animal nutrition is “consistent with Benson Hill’s strategy to expand and diversify its proprietary product portfolio, improve nutrition security, and foster collaboration with industry partners within the food value chain,” the company wrote.
“Benson Hill has the agility to persevere. Based on our ongoing strategic review, we believe the strengthening of our financial foundation, moving to an asset-light business model, and introducing our innovations into attractive broader end markets, is the most feasible path forward for Benson Hill,” said Deanie Elsner, the company’s newly appointed CEO, in a statement. “Through the actions we have taken and are continuing to implement, we are poised to deliver significant value as a leader in AI-driven proprietary seed innovation.”
Elsner continued, “We are already making progress on our strategic path. With the expected divestiture of our processing facilities, we plan to retire high-cost debt and extend our liquidity by more than 12 months. In addition, we are engaged in discussions with potential partners to scale our current proprietary portfolio and product pipeline for large-acre U.S. animal feed and pet food markets. I am excited about the opportunities to leverage the core strengths of the business for long-term value creation.”
The expansion into the market comes following an external analysis of several non-GMO, ultra-high protein low oligosaccharide commercial soybean varieties validating novel value-added attributes for poultry diets, swine rations and pet food. These varieties were developed from Benson Hill’s proprietary germplasm.
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