Plant-based meat producer Beyond Meat has secured a $100 million financing facility from Unprocessed Foods, an affiliate of the Ahimsa Foundation. This funding comes as the company grapples with disappointing Q1 financial results, including a record low stock price.

Beyond Meat's latest quarterly results reveal a decline in sales and a stock price that has hit unprecedented lows. The company’s struggles reflect broader challenges within the plant-based food sector, where changing consumer preferences and increased competition have put pressure on market leaders. Despite these setbacks, Beyond Meat says it remains committed to its mission of providing innovative plant-based products.

Ethan Brown, founder and CEO of Beyond Meat, highlighted the importance of the new financing in addressing the company's current challenges. “This facility provides us with additional liquidity as we advance our strategic priorities and invest opportunistically to help us drive our growth plans".

He added: "We are pleased to welcome a new investor who deeply understands our industry and is mission-aligned with our plant-based ethos. In addition to securing access to this substantial new financing, we are continuing to evaluate opportunities to further strengthen our balance sheet and best position our business for the future.”

The financing agreement includes a senior secured delayed-draw term loan with an initial interest rate of 12.0% before February 7 2030, escalating to 17.5% thereafter. The maturity date may extend to May 7 2035, subject to mutual consent, allowing Beyond Meat flexibility in managing its cash flow during this turbulent period.

Shaleen Shah, president of the Ahimsa Foundation, expressed confidence in Beyond Meat's potential, underscoring the alignment between the foundation's mission and the company’s vision for plant-based diets. “Beyond Meat is a category-leading business with exceptional products,” Shah remarked, reinforcing the foundation's commitment to supporting the company’s long-term growth.

As part of the financing deal, Unprocessed Foods will receive warrants to purchase up to 12.5% of Beyond Meat's outstanding shares at an exercise price linked to market performance, further aligning investor interests with the company's recovery strategy.