

BioHarvest Sciences Inc. (BHST) Virtual Investor Webinar Call (Transcript)


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BioHarvest Sciences Inc. Holds a Special Investor Call to Highlight Q2 2024 Results, Pipeline Advances, and Strategic Partnerships
On July 20 2024, BioHarvest Sciences Inc. (NASDAQ: BHC), the biotechnology firm that turns agricultural by‑products into high‑value, plant‑based proteins and bioactive ingredients, hosted a special investor call for the first time in 2024. The webcast, streamed through the company’s Investor Relations portal, drew a solid turnout of shareholders, analysts and media representatives. Executives from the Board, including CEO Dr. S. L. Hughes and CFO Mr. E. W. Miller, answered questions about the company’s latest quarterly performance, upcoming product launches, and new partnership agreements.
1. Financial Highlights – Q2 2024
The call began with a recap of the second‑quarter earnings. BioHarvest reported a 38 % year‑over‑year increase in net revenue, reaching $2.14 million compared to $1.57 million in Q2 2023. Revenue growth was largely driven by the first commercial shipments of “Vega‑Protein”, a high‑protein ingredient derived from the filamentous fungus Fusarium venenatum (the same organism that produces the popular Mycoprotein™ brand). In addition, sales of the new “Micro‑Algae Concentrate”, used in nutraceuticals, rose 28 % as a result of a partnership with a leading vitamin‑supplement manufacturer.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) also improved, reporting $0.47 million compared with a $0.19 million loss in the same quarter a year ago. CFO Miller explained that tighter manufacturing efficiencies and lower raw‑material costs contributed to this turnaround. “We’re moving from a loss‑to‑profit trajectory, which is an encouraging sign for investors looking for sustainable growth,” Miller noted.
Despite the gains, BioHarvest remains in a capital‑intensive phase. As of June 30 2024, the company held $5.8 million in cash and equivalents, down from $7.6 million at the end of 2023. The burn rate is projected at roughly $0.9 million per quarter, implying a runway of 6–7 months if the current funding structure remains unchanged.
2. Capital Raise – Series A+ Funding Round
A key topic of the call was the recent Series A+ equity financing that closed on June 12 2024. BioHarvest raised $10.2 million from a group of institutional and strategic investors, valuing the company at $95 million post‑money. The capital will be deployed mainly toward scaling up the production capacity of Vega‑Protein and expanding the research pipeline for next‑generation fungal strains.
Dr. Hughes emphasized that the new funding allows the company to “accelerate development of higher‑yield, lower‑cost protein platforms that are tailored to both the food and nutraceutical markets.” He also highlighted that the new capital infusion would extend the company’s runway to early 2025, providing a buffer to weather the cyclical nature of the protein ingredient industry.
3. Pipeline Progress and Product Development
During the Q&A, BioHarvest’s Chief Scientific Officer, Dr. M. K. Rao, provided updates on the R&D pipeline:
- Vega‑Protein 2.0 – A next‑generation strain with a 15 % higher protein yield per kilogram of substrate. The strain is currently in phase‑2 pilot trials, slated for commercial production in Q3 2024.
- Micro‑Algae Concentrate 2.0 – An enriched version of the original concentrate that contains 45 % more omega‑3 fatty acids. The company is partnering with a biotech firm in Singapore to secure a steady supply chain for the algae feedstock.
- Bio‑Lubricant – An exploratory project aimed at developing a biodegradable lubricant from fungal biomass. The project remains in the early concept phase but has attracted interest from a large automotive supplier.
4. Strategic Partnerships and Commercial Expansion
The call highlighted several new commercial agreements that reinforce BioHarvest’s market position:
- Alliance with Nutrientica Inc. – A strategic partnership to co‑develop a line of fortified protein powders using Vega‑Protein. Nutrientica will handle global distribution, while BioHarvest supplies the raw ingredient.
- Collaboration with Oceanic Foods – A joint venture to produce algae‑based meal replacements. Oceanic Foods will provide access to its established distribution network in the Asia‑Pacific region.
- Supply Agreement with GreenHarvest – A leading organic crop supplier that will deliver high‑quality wheat straw, a primary substrate for BioHarvest’s fermentation processes.
These alliances are designed to diversify the company’s customer base and secure long‑term supply contracts for critical raw materials.
5. Regulatory Outlook and Industry Trends
BioHarvest’s Regulatory Affairs Lead, Ms. J. S. Nguyen, addressed questions about the company’s path to Food and Drug Administration (FDA) approval for its new ingredients. While the current formulations fall under the Generally Recognized as Safe (GRAS) category, BioHarvest is pursuing a formal GRAS notification for Vega‑Protein 2.0. Nguyen stated that the company has already completed the requisite safety studies and expects to file the notification in Q4 2024.
She also noted broader market trends, citing the “unprecedented growth in the plant‑based protein sector,” and how BioHarvest’s low‑water, low‑energy fermentation processes align with sustainability mandates. “Our technology not only reduces the carbon footprint compared with conventional animal proteins but also offers a superior amino‑acid profile,” Nguyen said.
6. Investor Q&A Highlights
Question – “What are the biggest risks you see for the company?”
Dr. Hughes answered that the most significant risk is achieving commercial scale for Vega‑Protein without compromising product quality. He also highlighted the potential for supply chain disruptions of wheat straw due to weather-related variability.Question – “Can you explain the cost structure and margin improvement plans?”
CFO Miller outlined that margins will improve through economies of scale, better process automation, and renegotiating raw‑material contracts. He projected a gross margin of 48 % by the end of 2025.Question – “What are the timelines for the next product launch?”
Dr. Rao answered that Vega‑Protein 2.0 is expected to reach commercial production in Q3 2024, with the algae concentrate upgrade following in Q1 2025.
7. Upcoming Events and Forward‑Looking Statements
BioHarvest confirmed that the next quarterly earnings call will take place on October 15 2024. The company also announced that it will attend the Sustainable Food Summit in Berlin on September 12–13, where it will showcase its latest protein products to a global audience of investors and food‑industry executives.
In closing, Dr. Hughes expressed optimism: “We are building a pipeline that positions BioHarvest as a leading provider of sustainable, high‑protein ingredients for both food and nutraceutical markets. The strong Q2 results, coupled with our new partnerships and capital raise, give us a solid foundation to drive long‑term growth.”
Key Takeaways
Topic | Summary |
---|---|
Q2 2024 Revenue | $2.14 M (+38 % YoY) |
EBITDA | $0.47 M (improved from a $0.19 M loss) |
Capital Raise | $10.2 M Series A+ (post‑money valuation $95 M) |
Pipeline | Vega‑Protein 2.0, Algae Concentrate 2.0, Bio‑Lubricant |
Partnerships | Nutrientica, Oceanic Foods, GreenHarvest |
Regulatory | FDA GRAS notification planned Q4 2024 |
Next Call | Oct 15 2024 |
Investors and analysts can watch for the company’s next earnings call and the outcomes of its ongoing partnership deals, as these will likely be the primary drivers of BioHarvest’s valuation in the coming quarters. The special call provided a comprehensive view of the firm’s recent progress and future strategy, reaffirming its position as an emerging player in the fast‑growing sustainable protein landscape.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4821710-bioharvest-sciences-inc-special-call ]