Benson Hill Takes Steps to Strengthen Financial Position and Accelerate Shift to Asset-Light Model Focused on Animal Feed Markets

Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”), a food tech company unlocking the natural genetic diversity of plants, announced today plans to improve its financial position and accelerate its transition to an asset-light business model with a focused expansion into broadacre animal feed markets, complementing its accomplishments in human food ingredients. The near-term opportunity in animal nutrition is consistent with Benson Hill’s strategy to expand and diversify its proprietary product portfolio, improve nutrition security, and foster collaboration with industry partners within the food value chain.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231031003477/en/

Benson Hill Takes Steps to Strengthen Financial Position and Accelerate Shift to Asset-Light Model Focused on Animal Feed Markets (Graphic: Business Wire)

“Benson Hill has the agility to persevere. Based on our ongoing strategic review, we believe the strengthening of our financial foundation, moving to an asset-light business model, and introducing our innovations into attractive broader end markets, is the most feasible path forward for Benson Hill,” said Deanie Elsner, Chief Executive Officer of Benson Hill. “Through the actions we have taken and are continuing to implement, we are poised to deliver significant value as a leader in AI-driven proprietary seed innovation.”

Elsner continued, “We are already making progress on our strategic path. With the expected divestiture of our processing facilities, we plan to retire high-cost debt and extend our liquidity by more than 12 months. In addition, we are engaged in discussions with potential partners to scale our current proprietary portfolio and product pipeline for large-acre U.S. animal feed and pet food markets. I am excited about the opportunities to leverage the core strengths of the business for long-term value creation.”

Expanding the Liquidity Improvement Plan

Management is expanding the scope of its Liquidity Improvement Plan to maximize capital efficiency and provide a runway to execute the Company’s strategy.

• Shape the Business: The Company has taken actions to realize a $33 million run rate operating expense reduction in 2024, with expectations for future reductions in operating expense savings and capital expenditures.
• Build Liquidity: Negotiations are underway to divest the Company’s processing facilities. This includes a signed agreement to sell the soy crush facility in Seymour, Ind., for approximately $36 million of total gross proceeds, subject to working capital and other adjustments.
• Fund the Business: The successful execution of the Liquidity Improvement Plan is expected to extend the cash runway to maximize the value of the proprietary product pipeline. Management anticipates the actions above should provide more than 12 months of liquidity following payoff of the Company’s high-cost debt, which, when combined with anticipated final partnership and licensing agreements, will position the Company to better forecast its profitability timeline.

In addition, the Company continues to evaluate multiple strategic alternatives through discussions with interested parties about executing its strategy under public and private operating models.