Millennium Food-Tech R&D Partnership (TASE: MIFT) has reported profits of NIS 28 million, representing NIS 0.58 profit per partnership unit. The first annual financial report of the partnership as a public company provides a detailed look into its investment portfolio and the profit it has recorded. Millennium Food-Tech has raised NIS 94 million to date.
The financial report shows that through the three investments that have been made to date, the company has appreciated to an overall fair value (as of December 2020) of NIS 58.5 million, while cash worth NIS 58.9 million remains in its coffers, which could allow it to meet the short to medium term investment target it set itself.
Millennium Food-Tech CEO Chanan Schneider said, "After less than a year since we took Millennium Food-Tech public, I can say with satisfaction, that the three investments that we have made so far indicates that the methodology that we defined for making investments has proven itself. We have today NIS 57 million in cash in our coffers and I am convinced that in 2021 as well, we will succeed in making a substantial number of new investments in promising and breakthrough companies."
Millennium Food-Tech chairman Guy Rosen added, "The reputation and the credibility that Millennium Food-Tech has gained in the Israeli food tech ecosystem allows us to take part in and lead investment rounds in the most promising companies and I trust that and I am sure that already in the near future our investors will be able to enjoy the fruits of the new investments.
The first investment by the Partnership was in SavorEat, which has developed a method for producing plant based meat alternatives. The cost of the investment by Millennium in SavorEat was NIS 8.6 million, while the fair value of the investment was about NIS 40 million, as of the end of 2020 - (almost five times) and it has continued to rise since then. The partnership has holdings of 15.9% (14.3% in full dilution) in SavorEat.
The second investment was in Phytolon, which is engaged in research and the development of natural food coloring for the food industry. The cost of the investment in Phytolon was NIS 6.2 million through the SAFE (Simple Agreement for Future Equity) model, which creates a discount on the price of the next financing round and with protection of maximum value.
As of the date of the report, Phytolon had succeeded in effectively producing purple and yellow for yeast, and had presented proof of concept for large scale production and implementation of the colors in various food products. The company has also carried out a successful pilot project with large food companies worldwide in the snacks, ice cream and pastries categories and more. The aim of the pilot project is to replace the synthetic food colorings in these products.
The third investment, also on the SAFE model, was in Tipa. The partnership led the investment round of $10 million last month where it was joined by international investors from the world of food tech as a preliminary step for a major capital raising round that the company is planning during 2021. The cost of the investment in Tipa was NIS 13.1 million ($4 million)
Tipa develops, manufactures, markets and sells perishable packaging solutions designed for the flexible packaging market. The partnership reports that alongside a pilot project being conducted by the company with an international food giant and a collaboration with a fashion company, it also launched last month a collaboration that has aroused major interest with Dutch company Perfotec, which is developing sophisticated and unique technology to extend the shelf life of fresh produce. The combination of Tipa's perishable sheeting with Perfotec's technology allows the extension of the shelf life by up to double the amount of time for fresh fruit and vegetable packaging and thus dramatically reduces food waste.
Published by Globes, Israel business news - en.globes.co.il - on March 9, 2021
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