Central Bottling Company, also known as Coca-Cola Israel, has signed a strategic agreement with Israeli startup BioMilk to invest in and collaborate with the firm to develop products based on its cultured milk technology. have done.
Central Bottling Company is a private Israeli manufacturer and distributor of soft drinks, alcoholic beverages and dairy products. The firm has an Israeli franchise for Coca-Cola International’s Coca-Cola products.
BioMilk, whose shares are traded on the Tel Aviv Stock Exchange, said in a filing that the collaboration would help boost its R&D operations. Biomilk separates milk-producing cells from cows’ udders and transfers them to a bioreactor, where they come into contact with ingredients patented by the firm for milk production, but required by the cow in the final milk production process. Without it.
Under the memorandum of understanding signed between the parties, Central Bottling Company will invest a total of $2 million in BioMilk. Half the amount will be invested when the final agreement is signed, with the remaining $1 million being invested upon completion of the milestones.
For the initial investment, Central Bottling Company will get shares and options in Biomilk at a price of NIS 6.24 per share. Central Bottling Company will give BioMilk access to its experts and the two companies will work together to further develop cultured milk products, which will be tested at Central Bottling Company’s dairy manufacturing plant.
Shares of BioMilk were up nearly 3% in Tel Aviv on Monday at 4:55 p.m., from close to 8% earlier in the day.
The companies said they expected a final settlement to be reached within 60 days.