CULT Food Science Corp. has signed a binding Letter of Intent to acquire Because Animals Inc.’s consumer brand assets, related patents, non-scientific intellectual property, and product formulations. The acquisition will create the Company’s new Pet Food Division, collaborating with its portfolio companies to develop and commercialize cultivated pet food products. This move represents CULT’s goal to bring cell-based innovation into everyday life by launching pet foods into the multi-billion dollar pet food market.
As part of the acquisition, Because Animals’ original co-founder Joshua Errett has left the startup and will continue developing and commercializing the Because Animals’ consumer brand business under a different name within CULT Food Science. Meanwhile, Because Animals Inc. will continue to innovate in the pet food industry but will no longer be associated with CULT Food Science.
According to CULT’s CEO, Lejjy Gafour, cultivated products using cellular agriculture and precision fermentation are some of the few solutions that can create a sustainable and nutritious future for pets. In addition, the acquisition aligns with the Company’s mission to eliminate factory-farmed meats from the foods fed to companion animals. This move will have wide-ranging effects on society, including ripples throughout the food chain, economy, and the environment.
Under the terms of the binding letter of intent, Further Foods Inc. – CULT’s subsidiary – will acquire the assets from the vendor in exchange for a USD500,000 promissory note bearing interest at 4.35% and an initial 10% ownership stake in Further. The transaction will not result in a change of control of the Company within the meaning of the policies of the CSE. Since the fair market value of the transaction does not exceed 25% of the market capitalization of CULT, the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
Image provided by Because Animals Inc
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