Cult Food Science has signed a binding letter of intent (LOI) to acquire The Better Butchers (TBB), a Vancouver-based company specialising in meat alternatives.

The move signals Cult's ongoing commitment to expanding its portfolio within the rapidly evolving food technology sector, particularly in lab-grown meat and cellular agriculture.

The LOI outlines Cult's intention to purchase 100% of TBB's outstanding shares from its shareholders for a total consideration of $2 million, payable in common shares of Cult. Additionally, up to 10 million shares may be issued based on TBB meeting specific post-closing milestones.

TBB has garnered attention for its innovative use of mycelium-based proteins derived from fungi, which are produced through biomass fermentation. This approach enables the creation of products that not only aim to meet nutritional needs but also prioritise taste and texture – qualities that are often challenging to achieve in the alternative protein market.

Cult's acquisition of TBB is further bolstered by the latter's collaborations with advanced companies in precision fermentation and cellular agriculture, focusing on hybrid cultivated meats and premium ingredients. This partnership aligns with Cult's strategy to enhance its technological capabilities and product offerings in the competitive food market.

As part of the transaction, both Mitchell Scott, CEO of Cult, and Celeste Trujillo, co-founder of TBB, will join Cult's board of directors, with Trujillo taking on the role of CEO at TBB. Cult also plans to inject at least $300,000 into TBB to support its business development efforts.

The transaction is contingent upon various conditions, including satisfactory completion of due diligence, regulatory approvals, and the approval of Cult shareholders. The LOI stipulates that a definitive agreement must be executed by February 10 2025.

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