- Expanded Liquidity Improvement Plan includes planned
divestitures of processing facilities to enable an asset-light
business model
- Management has already secured nearly 50% of the cash needed to
retire senior term debt
- Commercially available proprietary soybean varieties and a
future innovation pipeline give Benson Hill a first-mover advantage
in animal feed and pet food
- Deanie Elsner appointed permanent Chief Executive Officer to
continue leading the evolution of Benson Hill
Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson
Hill”), a food tech company unlocking the natural genetic diversity
of plants, announced today plans to improve its financial position
and accelerate its transition to an asset-light business model with
a focused expansion into broadacre animal feed markets,
complementing its accomplishments in human food ingredients. 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.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231031003477/en/
Benson Hill Takes Steps to Strengthen
Financial Position and Accelerate Shift to Asset-Light Model
Focused on Animal Feed Markets (Graphic: Business Wire)
“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, Chief Executive Officer of Benson Hill. “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.”
Expanding the Liquidity Improvement Plan
Management is expanding the scope of its Liquidity Improvement
Plan to maximize capital efficiency and provide a runway to execute
the Company’s strategy.
- Shape the Business: The Company
has taken actions to realize a $33 million run rate operating
expense reduction in 2024, with expectations for future reductions
in operating expense savings and capital expenditures.
- Build Liquidity: Negotiations are
underway to divest the Company’s processing facilities. This
includes a signed agreement to sell the soy crush facility in
Seymour, Ind., for approximately $36 million of total gross
proceeds, subject to working capital and other adjustments.
- Fund the Business: The successful
execution of the Liquidity Improvement Plan is expected to extend
the cash runway to maximize the value of the proprietary product
pipeline. Management anticipates the actions above should provide
more than 12 months of liquidity following payoff of the Company’s
high-cost debt, which, when combined with anticipated final
partnership and licensing agreements, will position the Company to
better forecast its profitability timeline.
In addition, the Company continues to evaluate multiple
strategic alternatives through discussions with interested parties
about executing its strategy under public and private operating
models.
Broadacre Animal Feed Opportunity
The Company recently completed an external analysis of several
non-GMO, Ultra-High Protein low oligosaccharide (“UHP-LO”)
commercial soybean varieties validating novel value-added
attributes for poultry diets, swine rations, and pet food.
These breakthrough soybean varieties were developed from Benson
Hill’s proprietary germplasm and CropOS® innovation engine - an
AI-based prediction and data insights platform. Research confirmed
a trifecta of product attributes offered with UHP-LO desired by
animal nutritionists, processors, feed formulators, and farmers1,
as compared to commodity soybeans:
- Higher Protein Levels: Animal feed
costs can be lowered by replacing expensive animal protein sources
with non-GMO, U.S.-grown soybean meal.
- Lower Anti-Nutritional Factors and More
Energy: Improved soybean meal with fewer anti-nutritional
factors supports animal digestive health2 and overall performance,
contributing to the advancement of animal welfare.
- Enhanced Amino Acid Profile:
Essential amino acids reduce the need to add high-cost synthetic
amino acids to feed.
As previously announced, Benson Hill expects to expand its
UHP-LO soybean portfolio with herbicide-tolerant and
second-generation seed varieties in the next two to three years,
helping to extend its competitive advantage and diversify its
market reach for different geographies and end markets, including
large U.S. feed markets representing a total addressable market of
approximately 28 million acres.3 Benson Hill is conducting
additional studies as the 2023 crop comes out of the field and is
working with outside parties to perform feeding trials in more
species.
Leadership Appointment
In connection with this announcement, the Board of Directors has
appointed Elsner to the position of Chief Executive Officer,
effective immediately. She had served as Interim CEO since
June.
“In her first few months as Interim CEO of Benson Hill, Deanie
has demonstrated a keen understanding of the market complexities
and has uncovered ways to leverage the strength of CropOS and the
company’s unparalleled innovation pipeline,” said Dan Jacobi,
Chairman of the Benson Hill Board of Directors. “We appreciate her
willingness and enthusiasm to lead the company on this journey, and
the Board has every confidence that Deanie is the right person to
take Benson Hill into its next phase of growth and keep the company
on solid financial footing.”
About Benson Hill
Benson Hill moves food forward with the CropOS® platform, a
cutting-edge food innovation engine that combines data science and
machine learning with biology and genetics. Benson Hill empowers
innovators to unlock nature’s genetic diversity from plant to
plate, with the purpose of creating nutritious, great-tasting food
and ingredient options that are both widely accessible and
sustainable. More information can be found at bensonhill.com or on
X, formerly known as Twitter, at @bensonhillinc.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or the Company’s
future financial or operating performance and may be identified by
words such as “may,” “should,” “expect,” “intend,” “will,”
“estimate,” “anticipate,” “believe,” “predict,” or similar words.
These forward-looking statements are based upon assumptions made by
the Company as of the date hereof and are subject to risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. These forward-looking statements
include, among other things, statements regarding the Company’s
plans to strengthen its financial position and accelerate its shift
to an asset-light business model; statements regarding the
Company’s ability to enter new markets and the potential timing of
such entry; statements regarding the expected divesture of our
facilities; statements regarding the Company’s expansion and
execution of liquidity improvement plans and other cost-saving
measures, including the Company’s plans to retire its senior term
debt, and the anticipated timeline to achieve such objectives;
statements regarding the Company’s recently completed analysis of
several UHP-LO soybean varieties, and the potential characteristics
and benefits of such varieties, including their potential
applications for the poultry and swine feed and pet food markets;
statements regarding negotiations the Company has underway and the
anticipated results of such negotiations; statements regarding
potential strategic alternatives under public and private operating
models; statements regarding the Company’s plans to expand its
UHP-LO portfolio and to expand its product portfolio, including
with respect to animal nutrition; statements regarding the
Company’s plans for additional studies; statements regarding the
Company’s strategy and business and growth plans; statements
regarding the future of the Company’s management; any projections
of market opportunity; any financial or other information based
upon or otherwise incorporating judgments or estimates relating to
future performance, events or expectations; and the Company’s
strategies, positioning, resources, capabilities, and expectations
for future performance. Factors that may cause actual results to
differ materially from current expectations and guidance include,
but are not limited to: risks associated with the Company’s
transition of its business model and go-to-market strategy, its
liquidity improvement plans and other cost saving measures; the
risk that the Company may be unable to successfully implement its
plans, or that, even if such plans are successfully implemented,
such plans may be insufficient to achieve the objectives of such
plans, or that there may be adverse impacts on the Company’s
business and prospects from such plans; risks relating to the
accuracy of analyses, including with respect to the potential
characteristics and benefits of the Company’s UHP-LO soybean
varieties; risks relating to failed negotiations with regard to
strategic partners, licensing deals, and other potential
transactions, including strategic alternatives; risks relating to
entering new markets and growing market share, risks relating to
the animal nutrition market; risks relating to developing and
expanding the Company’s product portfolio; liquidity and other
risks relating to the Company’s ability to continue as a going
concern; risks associated with the Company’s ability to grow and
achieve growth profitably, including continued access to the
capital resources necessary for growth; risks associated with
managing capital resources; risks relating to maintaining key
employee, customer, partner and supplier relationships; risks
relating to changes in leadership; risks associated with
maintaining relationships with customers and suppliers and
developing and maintaining partnering and licensing relationships;
risks associated with changing industry conditions and consumer
preferences; risks associated with the Company’s ability to
generally execute on its business strategy; and other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in our
filings with the SEC, which are available on the SEC’s website at
www.sec.gov. Nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved,
including without limitation, any expectations about our
operational and financial performance or achievements, any
expectations that negotiations will lead to definitive agreements,
and any expectations regarding our UHP-LO, soybean varieties. There
may be additional risks about which the Company is presently
unaware or that the Company currently believes are immaterial that
could also cause actual results to differ materially from those
contained in the forward-looking statements. The reader should not
place undue reliance on forward-looking statements, which speak
only as of the date they are made. The Company expressly disclaims
any duty to update these forward-looking statements, except as
otherwise required by law.
Media Kit
1
https://informamarkets.turtl.co/story/feedstuffs-june-2023/page/10/1
2
https://www.sciencedirect.com/science/article/pii/S1056617123000090
3
https://usda.library.cornell.edu/concern/publications/m039k491c
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031003477/en/
Investor Contact Ruben Mella 314-714-6313
rmella@bensonhill.com
Media Contact Christi Dixon 636-359-0797
cdixon@bensonhill.com
Benson Hill (NYSE:BHIL)
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