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Sunday, June 23, 2024

(CSE:PLCN) Cannibble Foodtech Announces Major Food-Tech Acquisition

Cannibble Foodtech Ltd. (CSE: PLCN) is an Israeli food tech company that develops and manufactures consumable mix products infused with non-active and active cannabinoids (where legal to do so).

The Global Cannabis-infused Mixes Market size was estimated at USD 3,219.55 million in 2020 and is expected to reach USD 3,754.26 million in 2021, and is projected to grow at a CAGR of 17.44% to reach USD 9,924.12 million by 2027.

Israel’s PLCN added another central plank to its growth, which has seen several significant plays accomplished in the last months—and noticed a 52-week share price range of CDN$0.20 to CDN$0.96 and a current price of CDN$0.52.

The addition is a partially binding LOI (Letter of Intent) that contemplates the acquisition of Eshbal Functional Foods, a private Israeli food manufacturer established in 1940. Eshbal develops and produces unique formulations of nutraceuticals, medicinal foods, sugar-free and gluten-free products, vegan products, syrups, and dry mixes, including sweeteners.

Before this most recent move, Cannibble announced that in less than six months;

  • 40 of 100 SKUs on the shelves and/or in production.
  • New orders from Australia
  • New Line of Hemp protein bars
  • New Line of Hempellicious Hemp Spreads
  • New Line of “The Pelicann” Hemp Seed Powder Based Products on Amazon US. Marketplace
  • “The Pelicann” line on Walmart.com

The big news with Israel’s Eshbal, according to Yuval Levy, Chairman of Eshbal Functional foods, is that “The merger of Eshbal and Cannibble directly fits the strategy of both companies. Eshbal brings unique know-how and food technology, while Cannibble brings North American market experience and presence. We believe that the accumulated experience of both managements will drive market success and rapid growth of the combined company in this high-growth sector of “better-for-you” food products.” (PR Aug 29th).

This announcement firmly establishes PLCN as a growth leader in the ‘better-for-you’ food product growth sector.

The sector has impressive stats. Better-for-you products are purchased by 65% of consumers, showing that the concept holds widespread appeal. The types of foods represented by the PLCN/Eshbal deal also have an ethical component that is growing among consumers:

“Food shoppers, especially those aged 18-34, feel increasingly strongly about holding the brands they purchase to high ethical standards, making it imperative for food marketers and retailers to consider ethics in every aspect of their business practices. Still, food shoppers also take a range of other factors into account. In particular, there’s an opportunity to help shoppers balance the need to save money with a desire to make food choices that reflect their ethical standards” (Food Ethics – US – February 2020 Report)

Eshbal is a fascinating company and will add an impressive dimension as a subsidiary of Cannibble. It brings

• Transition from manufacturing essential generic food products – to the world of functional, advanced, and unique food products

• Finding development and operational solutions custom-tailored to the individual needs and desires of our customers

• Outstanding service from the concept phase and through to the ongoing supply of final product

• Uncompromising quality

Cannibble also brings Eshbal products and established White Label business to North America and the broader international market. Eshbal products are currently only available in Israel, both retail and online.

This deal is excellent for both parties and shareholders/investors: A marriage of complementary products and markets that has significant immediate and, more importantly, long-term growth benefits.

Eshbal Functional Food is true to its name – researching, developing and manufacturing food products from various areas, but mainly focusing on innovative functional food components – food products with beneficial health effects far beyond their nutritional value, such as gluten-free, sugar-free, dietary supplements, baby cereals, proteins and supplements for athletes, for the elderly and the sick. (Website)

Final Word. For Now.

“Yoav Bar-Joseph, CEO and director of Cannibble: “The proposed acquisition of Eshbal will mark a significant step in Cannibble’s development and coincides with the growth in consumer demand for gluten/sugar-free products, vegan, dietary supplements, and milk and meat substitutes. Our intention with this proposed acquisition is to position Cannibble as a leader in the US health and wellness “better-for-you” market, which is predicted to reach US$298.3 billion in the year 2022” (Report Linker)

A PLCN investment could potentially be ‘good for you’ and your portfolio.

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