Impossible Foods Inc is preparing for a public list that could estimate the American producer of vegetable burgers at about 10 billion dollars or more, according to people familiar with the matter.
That would be significantly more than the $ 4 billion that the company cost in private funding in 2020. This will highlight the growing demand for plant-based meat products, driven by environmental and ethical concerns among consumers.
Impossible Foods is investigating the public offering through an initial public offering (IPO) over the next 1
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The company, based in Redwood City, California, worked with a financial advisor to help manage discussions with SPAC after receiving lucrative offers, sources said. However, the public publication of SPAC could dilute the existing shareholders of Impossible Foods to a greater extent than the IPO, the sources added.
SPAC is a shell company that raises funds in an IPO in order to acquire a private company. For the acquired company, the merger is an alternative way of public disclosure through an IPO.
The merger with SPAC has emerged as a popular alternative to initial public offering for companies that want to go public with less regulatory scrutiny and more certainty about the assessment to be achieved and the funds to be raised.
Sources who asked, as the discussions are private, warned that the discussions are subject to market conditions and the company may prefer to continue a new round of fundraising.
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An Impossible Foods spokeswoman declined to comment.
Impossible Foods, whose supporters include venture capital investors Khosla Ventures and Horizons Ventures, as well as celebrities such as tennis star Serena Williams and rapper Jay-Z, have raised $ 1.5 billion in the private market so far, according to PitchBook.
In 2020, U.S. plant retail sales will reach $ 7 billion, up 27 percent year-on-year, according to a report by the Good Food Institute and the Plant Food Association (PBFA).
Founded in 2011, Impossible Foods sells its meatless burgers and sausages in grocery stores, and also has partnerships with similar ones to Burger King and Disney.
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The number of places where burgers are sold by Impossible Foods has increased in the last year to over 20,000 from 150 stores, the company said.
Shares of rival Beyond Meat Inc are trading at more than 400% above their 2019 IPO price.
Impossible Foods chief financial officer David Lee resigned earlier this year to join appHarvest, a builder of indoor farms, with David Borekki currently serving as the company’s interim chief financial officer.