Benson Hill Takes Steps to Strengthen Financial Position and Accelerate Shift to Asset-Light Model Focused on Animal Feed Markets

• Expanded Liquidity Improvement Plan contains deliberate divestitures of processing services to allow an asset-light business mannequin

• Management has already secured practically 50% of the money wanted to retire senior time period debt

• Commercially available proprietary soybean varieties and a future innovation pipeline give Benson Hill a first-mover benefit in animal feed and pet meals

  

• Deanie Elsner appointed everlasting Chief Executive Officer to proceed main the evolution of Benson Hill

ST. LOUIS, October 31, 2023–(BUSINESS WIRE)–Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”), a meals tech firm unlocking the pure genetic range of vegetation, introduced at present plans to enhance its monetary position and speed up its transition to an asset-light business mannequin with a targeted growth into broadacre animal feed markets, complementing its accomplishments in human meals elements. The near-term alternative in animal vitamin is according to Benson Hill’s technique to increase and diversify its proprietary product portfolio, enhance vitamin safety, and foster collaboration with trade companions inside the meals worth chain.

This press launch options multimedia. View the total launch right 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 overview, we consider the strengthening of our monetary basis, transferring to an asset-light business mannequin, and introducing our improvements into engaging broader finish markets, is essentially the most possible path ahead for Benson Hill,” stated Deanie Elsner, Chief Executive Officer of Benson Hill. “Through the actions we’ve taken and are persevering with to implement, we’re poised to ship important worth as a frontrunner in AI-driven proprietary seed innovation.”

Story continues

Elsner continued, “We are already making progress on our strategic path. With the anticipated divestiture of our processing services, we plan to retire high-cost debt and prolong our liquidity by greater than 12 months. In addition, we’re engaged in discussions with potential companions to scale our present proprietary portfolio and product pipeline for large-acre U.S. animal feed and pet meals markets. I’m excited concerning the alternatives to leverage the core strengths of the business for long-term worth creation.”

Expanding the Liquidity Improvement Plan

Management is increasing the scope of its Liquidity Improvement Plan to maximise capital effectivity and supply a runway to execute the Company’s technique.

• Shape the Business: The Company has taken actions to comprehend a $33 million run fee working expense discount in 2024, with expectations for future reductions in working expense financial savings and capital expenditures.

• Build Liquidity: Negotiations are underway to divest the Company’s processing services. This features a signed settlement to promote the soy crush facility in Seymour, Ind., for roughly $36 million of whole gross proceeds, topic to working capital and different changes.

• Fund the Business: The profitable execution of the Liquidity Improvement Plan is anticipated to increase the money runway to maximise the worth of the proprietary product pipeline. Management anticipates the actions above ought to present greater than 12 months of liquidity following payoff of the Company’s high-cost debt, which, when mixed with anticipated remaining partnership and licensing agreements, will position the Company to raised forecast its profitability timeline.

In addition, the Company continues to guage a number of strategic alternate options by discussions with events about executing its technique beneath private and non-private working fashions.

Broadacre Animal Feed Opportunity

The Company just lately accomplished an exterior evaluation of a number of non-GMO, Ultra-High Protein low oligosaccharide (“UHP-LO”) industrial soybean varieties validating novel value-added attributes for poultry diets, swine rations, and pet meals.

These breakthrough soybean varieties had been developed from Benson Hill’s proprietary germplasm and CropOS^® innovation engine – an AI-based prediction and information insights platform. Research confirmed a trifecta of product attributes provided with UHP-LO desired by animal nutritionists, processors, feed formulators, and farmers¹, as in comparison with commodity soybeans:

• Higher Protein Levels: Animal feed prices might be lowered by changing costly 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 components helps animal digestive well being² and general efficiency, contributing to the development of animal welfare.

• Enhanced Amino Acid Profile: Essential amino acids cut back the necessity to add high-cost artificial amino acids to feed.

As beforehand introduced, Benson Hill expects to increase its UHP-LO soybean portfolio with herbicide-tolerant and second-generation seed varieties within the subsequent two to 3 years, serving to to increase its aggressive benefit and diversify its market attain for various geographies and finish markets, together with giant U.S. feed markets representing a complete addressable market of roughly 28 million acres.³ Benson Hill is conducting further research because the 2023 crop comes out of the sector and is working with exterior events to carry out feeding trials in additional species.

Leadership Appointment

In reference to this announcement, the Board of Directors has appointed Elsner to the position of Chief Executive Officer, efficient instantly. She had served as Interim CEO since June.

“In her first few months as Interim CEO of Benson Hill, Deanie has demonstrated a eager understanding of the market complexities and has uncovered methods to leverage the energy of CropOS and the corporate’s unparalleled innovation pipeline,” stated Dan Jacobi, Chairman of the Benson Hill Board of Directors. “We admire her willingness and enthusiasm to steer the corporate on this journey, and the Board has each confidence that Deanie is the fitting person to take Benson Hill into its subsequent section of progress and hold the corporate on strong monetary footing.”

About Benson Hill

Benson Hill strikes meals ahead with the CropOS^® platform, a cutting-edge meals innovation engine that mixes information science and machine studying with biology and genetics. Benson Hill empowers innovators to unlock nature’s genetic range from plant to plate, with the aim of making nutritious, great-tasting meals and ingredient choices which are each broadly accessible and sustainable. More info might be discovered at bensonhill.com or on X, previously generally known as Twitter, at @bensonhillinc.

Cautionary Note Regarding Forward-Looking Statements

Certain statements on this press launch could also be thought-about “forward-looking statements” inside the that means 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 usually relate to future occasions or the Company’s future monetary or working efficiency and could also be recognized by phrases akin to “could,” “ought to,” “anticipate,” “intend,” “will,” “estimate,” “anticipate,” “consider,” “predict,” or related phrases. These forward-looking statements are primarily based upon assumptions made by the Company as of the date hereof and are topic to dangers, uncertainties, and different components that would trigger precise outcomes to vary materially from these expressed or implied by such forward-looking statements. These forward-looking statements embody, amongst different issues, statements relating to the Company’s plans to strengthen its monetary position and speed up its shift to an asset-light business mannequin; statements relating to the Company’s capability to enter new markets and the potential timing of such entry; statements relating to the anticipated divesture of our services; statements relating to the Company’s growth and execution of liquidity enchancment plans and different cost-saving measures, together with the Company’s plans to retire its senior time period debt, and the anticipated timeline to attain such aims; statements relating to the Company’s just lately accomplished evaluation of a number of UHP-LO soybean varieties, and the potential traits and advantages of such varieties, together with their potential functions for the poultry and swine feed and pet meals markets; statements relating to negotiations the Company has underway and the anticipated outcomes of such negotiations; statements relating to potential strategic alternate options beneath private and non-private working fashions; statements relating to the Company’s plans to increase its UHP-LO portfolio and to increase its product portfolio, together with with respect to animal vitamin; statements relating to the Company’s plans for added research; statements relating to the Company’s technique and business and progress plans; statements relating to the way forward for the Company’s administration; any projections of market alternative; any monetary or different info primarily based upon or in any other case incorporating judgments or estimates regarding future efficiency, occasions or expectations; and the Company’s methods, positioning, sources, capabilities, and expectations for future efficiency. Factors which will trigger precise outcomes to vary materially from present expectations and steerage embody, however usually are not restricted to: dangers related to the Company’s transition of its business mannequin and go-to-market technique, its liquidity enchancment plans and different cost saving measures; the danger that the Company could also be unable to efficiently implement its plans, or that, even when such plans are efficiently applied, such plans could also be inadequate to attain the aims of such plans, or that there could also be antagonistic impacts on the Company’s business and prospects from such plans; dangers regarding the accuracy of analyses, together with with respect to the potential traits and advantages of the Company’s UHP-LO soybean varieties; dangers regarding failed negotiations with regard to strategic companions, licensing offers, and different potential transactions, together with strategic alternate options; dangers regarding coming into new markets and rising market share, dangers regarding the animal vitamin market; dangers regarding creating and increasing the Company’s product portfolio; liquidity and different dangers regarding the Company’s capability to proceed as a going concern; dangers related to the Company’s capability to develop and obtain progress profitably, together with continued access to the capital sources vital for progress; dangers related to managing capital sources; dangers regarding sustaining key worker, buyer, accomplice and provider relationships; dangers regarding adjustments in management; dangers related to sustaining relationships with clients and suppliers and creating and sustaining partnering and licensing relationships; dangers related to altering trade circumstances and shopper preferences; dangers related to the Company’s capability to usually execute on its business technique; and different dangers and uncertainties set forth within the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our filings with the SEC, that are available on the SEC’s web site at www.sec.gov. Nothing on this press launch must be considered a illustration by any person that the forward-looking statements set forth herein might be achieved or that any of the contemplated outcomes of such forward-looking statements might be achieved, together with with out limitation, any expectations about our operational and monetary efficiency or achievements, any expectations that negotiations will result in definitive agreements, and any expectations relating to our UHP-LO, soybean varieties. There could also be further dangers about which the Company is presently unaware or that the Company presently believes are immaterial that would additionally trigger precise outcomes to vary materially from these contained within the forward-looking statements. The reader shouldn’t place undue reliance on forward-looking statements, which communicate solely as of the date they’re made. The Company expressly disclaims any obligation to update these forward-looking statements, besides as in any other case required by legislation.

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 supply model on businesswire.com: https://www.businesswire.com/news/home/20231031003477/en/

Contacts

Investor Contact
Ruben Mella
314-714-6313
[email protected]

Media Contact
Christi Dixon
636-359-0797
[email protected]