Impossible Foods cash injection
Plant-based meat substitute producer Impossible Foods got another cash injection, this time of $300m, which now implies a value of the company of $2bn.
This fundraising came not long after Impossible Foods announced a distribution tie-up with Burger King in the US and only weeks after one of its rivals, Beyond Meat, floated on the stock market.
Meat substitutes are a super-hot area right now as people try their products in increasing numbers, attracted by the healthier credentials and lower impact on the environment – and Beyond Meat’s share price reflects this popularity as its share price has almost tripled since its flotation a couple of weeks ago.
Although I would have thought that these companies are going to have to make huge investments in terms of production and R&D in the next few years, the demand appears to be rising strongly enough to justify this as an investment in future profits.
As far as I can see, the only things that could go wrong here are if something adversely affects the supply of pea or mushroom protein – like a disease or something – or if a farmers lobby starts trying to put the brakes on things.
Metro Bank rumours
The other thing I wanted to talk about today was Metro Bank as the company’s shares hit a new low yesterday as it tried to shut down social media rumours questioning the lender’s financial health.
Basically, some WhatsApp messages circulated over the weekend questioning the financial health of the bank and caused panic among some customers who then started to queue up to withdraw money and valuables from their accounts and safety deposit boxes.
Metro Bank’s share price has fallen by almost 80% since January after an accounting error came to light, so you can see how “false news” like this could cause panic.
The bank denied the rumours, but this is undoubtedly bad PR for a company that is trying to raise money from investors at the moment.