Moolec Science Presents Second Quarter Fiscal Year 2024 Business Update
- Advancements in soybean seed propagation and bovine myoglobin gene confirmation showcase Moolec's progress in Molecular Farming technology.
- Product marketing at Gulfood 2024 demonstrates the company's commitment to innovation and commercialization.
- Capital Raise of ~$30M with strategic investors and farmers indicates strong support for Moolec's growth and product development.
- Management's dedication to maintaining a healthy financial position and navigating future growth stages reflects a strategic focus on long-term success.
- Slight decline in revenues and other income (Ex-IAS 29) may pose challenges for revenue growth in the short term.
- Despite cost efficiency, operational cash utilization of ~$4M raises concerns about sustainable cash flow management.
- While partnerships with farmers contribute to funding health, potential dilution from convertible notes and additional raises could impact shareholder value.
Insights
The capital raise of approximately $30M, with a blend of cash and in-kind contributions, is a significant liquidity event for Moolec Science SA. This infusion of capital, especially the $1M raised from farmers, indicates strategic confidence in Moolec's business model and its potential to disrupt the food industry. The slight decrease in revenues QoQ should be scrutinized against the backdrop of their R&D investments and whether this trajectory is sustainable in the long term. Operational cash utilization of ~$4M, with a substantial portion allocated to reducing payables, suggests a strategic move to strengthen the balance sheet, potentially improving supplier relationships and credit terms.
Moolec Science's advancements in Molecular Farming technology, particularly the stable propagation of animal protein genes in plant seeds, are promising for the future of alternative protein sources. The initiation of pre-submission consultations with the US-FDA for their novel yeast strain indicates a proactive approach to regulatory compliance, which is critical for market entry and consumer acceptance. The showcasing of next-generation plant-protein prototypes at Gulfood 2024 may generate early interest and feedback, which is crucial for product refinement and successful commercialization. The market should monitor consumer and regulatory responses closely as these factors will significantly influence Moolec's market potential.
The development of third and fourth-generation soybean seeds with stable porcine myoglobin gene copies is a breakthrough in agricultural biotechnology. This stability is crucial for consistent product quality and commercial scalability. The confirmation of the bovine myoglobin gene in pea seeds further diversifies Moolec's portfolio, potentially offering different textures and nutritional profiles to meet varying consumer demands. The collaboration with farmers not only as investors but also as potential producers could create a vertically integrated supply chain, reducing costs and enhancing control over the production process. However, the long-term ecological and economic impacts of introducing genetically modified organisms into the agriculture system must be monitored.
LUXEMBOURG / ACCESSWIRE / March 13, 2024 / Moolec Science SA (NASDAQ:MLEC) a science-based food ingredient company focused on producing animal proteins in plants through Molecular Farming technology, announced today its Business Update for the second quarter of Fiscal Year 2024 ended December 31, 2023.
Moolec Science Logo
The main highlights of Moolec's business update are as follows:
- SOOY1 | Piggy Sooy™ Platform: Third generation (T3) soybean seed propagation has started, and fourth generation (T4) seeds are expected to be harvested in April 2024. A molecular analysis reveals that the current T3 soybean population contains a stable number of porcine myoglobin gene copies consistent with a population that is not segregating.
- PEEA1: Scientific team confirms the presence of bovine myoglobin gene in pea seeds and the gene's stable inheritance across plant generations.
- YEEA1: Moolec´s prototyping platform includes a novel yeast strain that is being developed as a dietary supplement and food ingredient, and Moolec has begun the first of several pre-submission consultations with US-FDA.
- Product Marketing: The next generation of textured plant-protein prototypes produced at Moolec's industrial and commercial R&D center were presented to the public in Gulfood 2024.
- Financial highlight: Capital Raise of ~
$30M with$10M in cash and ~$20M in kind contributions materialized in October 2023 with strategic investors through a convertible note followed by an additional ~$1M raised with farmers in December 2023. Revenues and other income (Ex-IAS 29) of ~$1.7M slightly down QoQ. R&D, Admin and other Expenses in line with historical track record of cost efficiency. Operational cash utilization of ~$4M includes ~$2.7M allocated to lower accounts payable.
"This quarter has been a testament to the dedication and hard work of our team. We have made steady progress in our research and development efforts as well as product development. I am incredibly proud of our team's delivery and execution. Thank you to the Moolers, and to our partners for their continued support," stated Gastón Paladini, Chief Executive Officer and Co-Founder of Moolec Science.
"Our financial position reflects our commitment on multiple fronts. The strategic partnerships we have formed, most recently with farmers, will be instrumental not only in our funding health, but also contribute to support Moolec's product growth and commercialization in the near future," declared José López Lecube, Chief Financial Officer for the company. He then continued by saying: "As we move forward, we remain focused on maintaining a healthy financial position and are confident in our ability to navigate the next stages of our growth."
Conference Call
Management will host a Conference Call and question-and-answer session, which will be accompanied by a presentation available during the webinar.
To access the call, please use the following information:
- Date: Wednesday, March 13, 2024
- Time: 08:30 AM Eastern Time (US and Canada)
- Link to join the webinar: https://icrinc.zoom.us/j/92375922161?pwd=Qmt6NzdVUGNWaEhTT1NDOHU3Tjlydz09
- One tap mobile: +13017158592,,92375922161#,,,,*888246# US
- Dial In: +1 301 715 8592 US | Webinar ID: 923 7592 2161, Passcode: 888246
- International numbers available: https://icrinc.zoom.us/u/acVKYeTJwM
Please connect 5 minutes prior to the start time to register and join.
A recording of the call and the pdf version of the presentation will be available after the conclusion of the live event via Moolec's Investor Relations website.
About Moolec Science SA
Moolec is a science-based ingredient company leader in the use of Molecular Farming technology for food. The Company's mission is to create unique food ingredients by engineering plants with animal protein genes. Its purpose is to redefine the way the world produces animal-based food, for good and for all. Moolec's technological approach aims to have the cost structure of plant-based solutions with the organoleptic properties and functionality of animal-based ones. Moolec's technology has been under development for more than a decade and is known for pioneering the production of a bovine protein in a crop for the food industry. The Company's product portfolio and pipeline leverages the agronomic efficiency of broadly used target crops, like soybean and safflower. Recently, it acquired plant-based ingredient capabilities to consolidate Molecular Farming Technology. Moolec has a growing international patent portfolio (26, both granted and pending) for its Molecular Farming technology. The Company is run by a diverse team of Ph.Ds and Food Insiders, and operates in the United States, Europe, and South America.
Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to performance, prospects, revenues, and other aspects of the business of Moolec are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors, about which we cannot be certain. We cannot assure you that the forward-looking statements in this press release will prove accurate. These forward-looking statements are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among others, changes in applicable laws or regulations, the possibility that Moolec may be adversely affected by economic, business and/or other competitive factors, costs related to the scaling up of Moolec's business and other risks and uncertainties, including those included under the header "Risk Factors" in the Moolec's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC"), as well as Moolec's other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of Moolec's assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements.
Contact Information
Catalina Jones
Chief of Staff & Sustainability
comms@moolecscience.com
Investor Relations
ir@moolecscience.com
Michael Bowen
ICR, LLC
moolecir@icrinc.com
Related Files
Moolec Science - Business Update Q2FY2024_Final
SOURCE: Moolec Science
View the original press release on newswire.com.
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