Benson Hill, Inc. (NYSE: BHIL) stock is garnering notable momentum during the premarket trading session today. The value of Benson Hill’s shares has surged by 7.55%, currently trading at $0.1638, as per the most recent update.
In a recent development, Benson Hill (BHIL) has officially conveyed the ownership of its soybean crushing facility located in Seymour, Indiana, to White River Soy Processing, LLC. This transaction has been executed at an approximate sum of $36 million in total gross proceeds, accounting for potential adjustments related to working capital and other factors.
This transfer signifies the fulfillment of an anticipated milestone within Benson Hill’s overarching Liquidity Improvement Plan. The company intends to employ the proceeds from this sale to bolster its financial liquidity, reduce outstanding debts, and curtail operational and working capital expenditures, all the while preserving its valuable partnerships with agricultural collaborators in Indiana.
Benson Hill had been in possession of and managing this facility since the year 2021. The divestment of the Seymour crushing assets aligns with our strategic concentration on future expansion while concurrently facilitating disciplined capital allocation as delineated in our comprehensive three-part Liquidity Improvement Plan.
Under Benson Hill’s tenure, the Seymour team achieved record-breaking safety and production benchmarks. Approximately 30 team members will transition into the employ of White River, ensuring a seamless handover for our clientele. Benson Hill is committed to honoring the pre-existing contracts with farmer partners who supply grains to the Seymour facility for the years 2023 and 2024.
The involved parties also anticipate finalizing an agreement pertaining to grain supply and licensing, which will facilitate the ongoing processing of Benson Hill’s proprietary soybeans through the facility.
BHIL is concurrently strategizing to fortify its financial standing and expedite its evolution into an asset-light business model with a pronounced focus on expanding into the broadacre animal feed markets. This expansion effectively complements the company’s achievements in the realm of human food ingredients.
The immediate prospect in animal nutrition perfectly aligns with Benson Hill’s overarching vision to broaden and diversify its proprietary product portfolio, enhance nutritional security, and foster collaborative relationships with industry stakeholders across the entire food value chain.
