Nabati Foods Global (MEAL.C) announced today that it has received approval to list its common shares on the Canadian Securities Exchange (CSE). The Common Shares have commenced trading on the CSE as of October 4, 2021, under the symbol MEAL.
“We are very pleased to announce Nabati Foods’ listing onto the CSE…We are extremely optimistic about the burgeoning plant-based food industry and Nabati’s market position within it,” said CEO, COO and Director, Ahmad Yehya.
In the Company’s “Nabati Origins” video, when Ahmad Yehya, Nabati’s CEO and COO, said, “the planet is in disarray, but what if we could make a difference and help the planet by doing something as simple as eating?” a shiver ran down my spine…I should really close my window before I catch a cold. Jokes aside, Ahmad’s words struck a chord with me, emphasizing just how simple reducing our environmental impact can be. Supported by numerous studies, Ahmad’s statement carries some substantial weight. According to an article published by UCLA Sustainability titled The Case for Plant-Based, shifting away from animal-based foods could add up to 49% to the global food supply without expanding croplands. Furthermore, this would simultaneously reduce carbon emission and waste byproducts, which ultimately end up in our oceans. Speaking of water, minimizing our consumption of animal-based products would reduce our water use by at least 50%. To put things into perspective, 1 pound of beef requires anywhere between 2,000 and 8,000 gallons of water to produce. On the contrary, 1 pound of tofu requires 302 gallons of water.
With this in mind, consuming meat alternatives will substantially decrease pollution and resource consumption, both of which are associated with the production of animal-based products. However, switching to a plant-based diet is no easy task, especially if you grew up eating meat-based products as I did. From the gamey taste of ostrich eggs to the savory flavors of a medium-rare lamb shank, I have consumed my fair share of animal-based foods. Since I first began eyeing the plant-based sector, I have teetered between a sustainable plant-based lifestyle and my current diet, consisting mostly of meat with some vegetarian options thrown in. Having now spent several months researching and eating plant-based foods, I am starting to think that those fanatical vegans on Facebook might be on to something. When it comes to living a plant-based lifestyle, one of my biggest concerns was nutritional value. As someone who prioritizes my physical health most of the time, I tend to favor food products with high protein values. That being said, plant-based companies like Nabati are changing the game with their nutritional meat alternatives.
Who is Nabati Foods?
- $37,241,855.54 Market Capitalization
Nabati Foods Global (MEAL.C) is a food technology company focused on designing, developing, manufacturing, and distributing a variety of plant-based products. The Company offers consumers a wide range of whole, natural, plant-based, gluten-free, and soy-free foods through its four signature products lines, including dairy-free cheesecakes, cheese alternatives, plant-based egg alternatives, and plant-based meats. Nabati products are currently sold in more than 700 independent stores across North America, including major retailers like Sobeys, Metro, Safeway, Whole Foods, and Loblaws, to name just a few. Additionally, the Company’s Cheeze products are used by major food brands such as Cobs Bread, Mucho Burrito, and Quesava.
“Nabati Plant Eggz™ offers the same experience when they are cooked as you get when cooking chicken eggs. They work flawlessly for scrambled eggs, omelets, quiches, and other favorites…We are thrilled to be able to bring this product to more consumers, and give back that traditional experience of breakfast for those people who are looking to cut our animal products or add a few more plant-based options into their diet. We believe that eating to improve your health and the health of the planet doesn’t have to be difficult, and it doesn’t have to be a trade-off,” said Ahmad Yehya.
Normally, I wouldn’t bat an eye at “plant-based egg alternatives,” however, Nabati’s Plant Eggz™ comes in a squeeze bottle. Yes, you read that right. Although the concept of eggs in a squeeze bottle is a tad unsettling, Plant Eggz™’s nutritional value is nothing to scoff at. While traditional eggs offer approximately 9.56 grams of protein per 76 grams, the Company’s Plant Eggz™ offers a comparable 6 grams of protein per 76 grams. Plant Eggz™ products are designed to mimic the same consistency, taste, and texture as traditional eggs by utilizing lupin and pea protein. Moreover, in addition to having only 100 calories per serving, Plant Eggz™ contain no cholesterol, whereas regular eggs contain roughly 321 milligrams or 107% of the recommended daily value. However, it is worth noting that this cholesterol is not necessarily bad. When it comes to high cholesterol and heart disease, the two main culprits are saturated fats and trans fats, not the dietary cholesterol we consume. Still, I should probably stop eating close to four eggs a day…
Latest News + Market Opportunity
Referring back to Nabati’s latest news, the Company announced today that has received approval to list its common shares on the CSE. Nabati initially received conditional approval to list its common shares on the CSE on September 27, 2021. In connection with the CSE listing, the Company also announced that 4,509,390 incentive stock options were granted to directors, officers, employees, and consultants of the Company in accordance with Nabati’s stock options plan. The options have an exercise price of $0.50 per common share and are exercisable for a period of five years from the listing date. The Company has also awarded 500,000 restricted stock units (RSUs) to a director of Nabati pursuant to the terms of the Company’s restricted share unit plan. Having now listed on the CSE, what market opportunity is there for Nabati?
Glad you asked! According to the Plant-Based Foods Association, retail sales of plant-based foods increase substantially in the United States. More specifically, plant-based food sales surpassed $7 billion, with sales surging 27% in 2020. In total, sales were consistent across the nation, exhibiting growth of 25% in every US census region. With this in mind, in 2020, 57% of all US households purchased plant-based foods, demonstrating an increase of 53% compared to 2019. In a report released by Bloomberg Intelligence, it was estimated that the global retail sales of plant-based food alternatives could reach an impressive $162 billion by 2030, or 7.7% of the expected $2.1 trillion global protein market. In particular, plant-based condiments and dressing as well as eggs and other items are expected to grow from $2.3 billion to $25.7 billion by 2030. With this in mind, Nabati is well-positioned to capitalize on this market with a diverse offering of meat, dairy, and egg alternatives, including the Company’s popular Plant Eggz™ brand. Furthermore, in addition to launching Plant Eggz™ in the US on August 30, 2021, Nabati announced on September 17, 2021, that Plant Eggz™ would begin selling at all 13 The Grocery Outlet locations across Ontario. With Nabati, it may be worth putting some of your eggs in this basket.
Financially speaking, Nabati has done quite well for itself since its inception in 2014. According to the Company’s Interim Financial Statement for the six months ended June 30, 2021, Nabati’s cash position was CAD$3,556,129 on June 30, 2021, up from a measly CAD$14,893 on December 30, 2021. On the contrary, Nabati’s total liabilities were reduced substantially from CAD$2,374,421 to CAD$1,350,642 in the same period. The Company’s total assets increased significantly from CAD$537,121 to CAD$6,763,869. For the six months ended June 30, 2021, Nabati reported revenue of CAD$335,301, up from CAD$268,443 year-over-year. Now that Nabati has been listed on the CSE, what can we expect from the Company looking forward?
Nabati Commentary
Equity Guru had the privilege of communicating with Brittany Whittmore, the CEO and Principal Publicist of Exvera Communications. While in contact, Brittany shared direct commentary from Nabati’s CEO, Ahmad Yehya. It is worth mentioning that Nabati entered into a Public Relations Services Agreement with Exvera on January 9, 2021, pursuant to which the Company will pay Exvera $7,000 per month for various public relations services. With the formalities out of the way, let’s talk about what’s on the horizon for Nabati. When asked what the Company has planned for the future, Mr. Yehya stated:
“As we grow, we plan on continuing to expand our distribution channels via grocery, eCommerce, food service, and industrial avenues. This year we completed the construction of a new manufacturing facility in Edmonton that has increased our production capacity and allows us to get our products into the hands of more customers.”
With this in mind, Mr. Yehya is referring to Nabati’s 7,430 square foot facility, which the Company leased in December 2020. So far, Nabati has spent approximately $1.34 million on the buildout of this facility, which is intended to store inventory, produce plant-based meats and Nabati Cheeze, as well as serve as its new headquarters. Additonally, Nabati entered into a non-exclusive co-packaging agreement with WG dated May 5, 2021, to develop 20,000 square feet of WG’s facility located in Brampton, Ontario. Under this agreement, WG will produce, manufacture, and package certain Nabati products based on purchase orders submitted to WG by the Company, subject to certain minimum purchase orders in each three-month period. Nabati has spent roughly $470,000 on the development of this facility. When asked if the Company has any prospective distribution or retail agreement planned in the near future, Mr. Yehya stated:
“We are always on the lookout for partnerships that will make Nabati Foods products more accessible to customers. We recently announced that our Nabati Plant Eggz™ has become available in The Grocery Outlet in Ontario, Sobeys in Quebec, and at Whole Foods across B.C. and Ontario. We are looking forward to continuing to expand throughout North America and internationally.”
Currently, Nabati’s marketing is aimed at foodservice operators and consumer packed goods (CPG) companies, with the intent of building strategic relationships and promoting the Company’s brand and products via said channels. That being said, in its Listing Statement, Nabati disclosed that it may undertake strategic acquisitions to expand operations in different global markets while supplementing its product portfolio. Moving on, Equity Guru also inquired as to whether or not Nabati has any new products currently being developed or planned for the future, to which Mr. Yehya stated:
“As the first Canadian company to launch a plant-based liquid egg product that offers the same consistency, taste, and texture as a traditional chicken egg, innovation is at the heart of what we do here at Nabati Foods and we plan to continue to grow our product lines. It is especially important to us that the products we develop are free of all common allergens – we want to create foods that bring people together – Nabati Plant Eggz are another great example of this, as they are the only plant-based liquid egg on the market that is free of both soy and gluten.”
It goes without saying that eggs are a huge part of Nabati’s diet. Having launched its Plant Eggz™ product in the US via Nabati.ca and VegNews’ deal of the week, the Company clearly has high hopes for its plant-based eggs, and rightfully so. Being the first of its kind to launch in Canada, Nabati’s Plant Eggz™ products have a unique foothold in the nation’s rapidly expanding plant-based market. With operations throughout North America, Nabati is well-positioned to expand its brand while establishing additional distribution, packaging, and retail agreement. Having now listed on the CSE, Nabati may be worth keeping an eye on as issues surrounding the environment and sustainability continue to grow.
Having now commenced trading on the CSE, Nabati’s share price opened at $0.85 today. The Company’s shares are up 1.22% and were trading at $0.83 as of 10:36 AM ET.
