Another Israeli company from the Tel Aviv Exchange in the year 2021 arrived at the end of the road as an independent company. Food Technology Company Nextferm Technologies Ltd. This week it announced that it is suspended, with the exception of a joint venture in India. After this announcement, the company's share price decreased by 50 %, giving it a ceiling for the market of 7 million NIS, a decrease of 99.5 % since the public subscription.
Nextferm informed the knowledge that after the decision of the Board of Directors, the company's 11 employees were informed of the comment and that the administration will work to realize the company's assets and technologies to reduce obligations, as much as possible to maintain the company's activity as a “continuous source of concern”.
Nextferm has instructed the administration to search for a buyer of the company's activity, including efforts to find a buyer with or without the company's activity. The company has only $ 230,000 cash for 1.45 million dollars, including daily obligations of $ 1.14 million.
Production of food ingredients in yeast without genetic engineering
NEXTFerm was founded by Boaz Noy, Dr. Tzafra Cohen and Yossi, all of whom are former employees in Enzymotec, FoodTec to Frutarom was sold in 2017 for 210 million dollars. Nextferm has developed technology to create food ingredients in yeast without genetic engineering.
Pioneer Nextferm is a vegetable protein produced in yeast. The company has produced several dozens of products and calls in its reports that there is a lot of interest in it from nutritional and nutritional supplement companies around the world. However, the process of making losses was, and the expansion of the productive capacity to achieve the savings of size was not possible without additional investments.
One of the things that attracted investors to the public subscription in Nextferm in January 2021 was the presence of two additional products, was supposed to diversify its risks and bring money until the main product is tender. One of them was a product for optimizing the licensed yeast bread. Marketing was sold to one of the leading companies in this field, but the revenues were not large, and the license was completed in 2024. Nextferm also developed and marketing food supplements sold in the United States and Canada, but because of the difficulty of raising resources, he was not able to invest in proving its clinical effectiveness or marketing it.
Nextferm's revenues last year amounted to only $ 174,000, compared to $ 283,000 in 2023. Last year was $ 5.3 million, and in total, 37 million dollars were “burned” since its foundation.
Therefore, in 2024 Nextferm decided to lay off most of the dozens of employees to reduce expenditures to $ 2 million annually, while maintaining its cooperation in the yeast field with the Indian partner, Kothari, who is responsible for producing and marketing the product with the participation of revenues on an equal footing. This cooperation should allow the company to exist, with expenses of about $ 2 million a year.
In the report published this week, Nextferm explained that he was unable to sell 900,000 dollar equipment, and thus reached its current decision, “because of the continuous difficulty in collecting financing to continue the company's operations.”
“We, the company's managers and employees, believe in the product and technology, but the field of food technology requires a much more investment and time than we can.
It was published by Globes, Israel Business News – En.globes.co.il – on April 2, 2025.
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