Unique: Not possible Meals in talks to listing on the inventory market

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© Reuters. FILE PHOTO: Not possible Meals plant-based beef merchandise are seen on the meat part of a series grocery store in Hong Kong

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By Anirban Sen and Joshua Franklin

(Reuters) – Not possible Meals Inc is getting ready for a public itemizing which may worth the U.S. plant-based burger maker at round $10 billion or extra, in line with folks acquainted with the matter.

This could be considerably greater than the $4 billion the corporate was price in a personal funding spherical in 2020. It will spotlight rising demand for plant-based meat merchandise, pushed by environmental and moral considerations amongst shoppers.

Not possible Meals is exploring going public by means of an preliminary public providing (IPO) within the subsequent 12 months or a merger with a so-called particular goal acquisition firm (SPAC), the sources stated.

The Redwood (NYSE:) Metropolis, California-based firm has labored with a monetary adviser to assist handle discussions with SPACs after receiving gives at a profitable valuation, the sources stated. Going public by means of a SPAC may dilute present Not possible Meals shareholders, nevertheless, by a better extent than an IPO, the sources added.

A SPAC is a shell firm that raises funds in an IPO with the purpose of buying a personal firm. For the corporate being acquired, the merger is an alternate solution to go public over an IPO.

Merging with a SPAC has emerged as a preferred IPO various for firms searching for to go public with much less regulatory scrutiny and extra certainty over the valuation that will likely be attained and funds that will likely be raised.

The sources, who requested as a result of the discussions are non-public, cautioned that the deliberations are topic to market circumstances and the corporate might decide to pursue one other non-public fundraising spherical.

A spokeswoman for Not possible Meals declined to remark.

Not possible Meals, whose backers embody enterprise capital buyers Khosla Ventures and Horizons Ventures, in addition to celebrities like tennis star Serena Williams (NYSE:) and rapper Jay-Z, has thus far raised $1.5 billion within the non-public market, in line with PitchBook information.

In 2020, U.S. plant-based retail gross sales hit $7 billion, up 27% yr on yr, in line with a report by the Good Meals Institute and the Plant-Primarily based Meals Affiliation (PBFA).

Based in 2011, Not possible Meals sells its meat-free burgers and sausages in grocery shops and likewise has partnerships with the likes of Burger King and Disney.

The variety of areas the place Not possible Meals’ burgers are offered has elevated up to now yr to greater than 20,000 from 150 shops, the corporate has stated.

Shares of rival Past Meat (NASDAQ:) Inc are buying and selling greater than 400% above its IPO worth from 2019.

Not possible Meals Chief Monetary Officer David Lee stepped down earlier this yr to hitch indoor farm builder AppHarvest, with David Borecky presently serving as the corporate’s interim CFO.

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