BioHarvest Awarded $1.4M Grant from the Israel Innovation Authority to Pioneer AI-Driven Plant-Cell Synthesis

Rhea-AI Summary

BioHarvest Sciences (NASDAQ: BHST) received approval from the Israel Innovation Authority for a 4.33 million NIS (about USD $1.4 million) non-dilutive grant to fund an AI-driven plant-cell synthesis R&D program. The zero-interest, milestone-based loan will support integrating data science, machine learning, computer vision and digital sensing into BioHarvest's plant cell culture workflows.

The initiative aims to replace empirical trial-and-error with predictive, data-driven optimization to forecast plant cell propagation and maximize active metabolite yields. This is the second IIA grant BioHarvest has received this year, complementing a prior facility automation grant and together supporting a transformation from AI-powered discovery to autonomous commercial production.

Positive

• 4.33M NIS (~$1.4M) non-dilutive, zero-interest grant strengthens funding
• Second Israel Innovation Authority grant in 2026 supports broader tech upgrade
• Grant targets predictive AI platform to optimize plant-cell metabolite yields
• Funding supports CDMO-focused precision botanics pipeline and early-stage R&D efficiency

Negative

• Grant structured as a repayable loan contingent on commercial milestones
• Repayment expected from future project revenues, creating conditional liability

News Explained

For the approved IIA funding, repayment is conditional on predefined commercial milestones and is expected to come solely from future revenue generated by the funded project, rather than from an equity issuance.

News Market Reaction – BHST

+2.15%

1 alert

+2.15% Session close to close

$62.79M Market Cap

0.4x Rel. Volume

In the Jul 15 session, BHST gained 2.15%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Set against low reported short positioning and a pre-headline price near the 52-week low, this AI-fo...

Analysis

Set against low reported short positioning and a pre-headline price near the 52-week low, this AI-focused grant adds non-dilutive support but does not directly address earlier going-concern disclosures; investors may watch how efficiently it converts into CDMO revenue opportunities.

Key Figures

IIA grant amount: 4.33 million NIS IIA grant amount (USD): $1.4 million Number of IIA grants in 2026: 2 grants

3 metrics

IIA grant amount 4.33 million NIS Israel Innovation Authority non-dilutive grant

IIA grant amount (USD) $1.4 million Approximate value of approved IIA grant

Number of IIA grants in 2026 2 grants Second Israel Innovation Authority grant this year

Historical Context

5 past events · Latest: Jun 18 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 18	conference presentation	Neutral	-0.6%	Announcement of BIO International Convention presentation on Botanical Synthesis platform.
May 18	partnership expansion	Positive	-3.4%	Expanded collaboration with Tate & Lyle on multiple plant-based sweetener molecules.
May 14	earnings report	Positive	+3.9%	Q1 2026 revenue growth with strong gross margin and maintained full-year guidance.
May 13	leadership appointment	Positive	+3.9%	New VP Business Development appointed to drive CDMO contracts and facility ramp.
May 13	cdmo milestone	Positive	+4.3%	Completion of Stage 1 saffron CDMO project under $1.125M multi-stage agreement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

BHST has mostly traded in line with positive operational news, with one notable divergence on a partnership expansion headline.

Key Terms

non-dilutive, machine learning, computer vision, bioinformatics, +2 more

6 terms

non-dilutive financial

"This non-dilutive funding will support a new research initiative"

Non-dilutive describes funding or income that does not reduce existing shareholders’ ownership percentage. It matters to investors because it lets a company raise money or generate value—through grants, loans, licensing deals, or revenue—without issuing extra shares, so each existing share keeps the same claim on profits and control; think of adding toppings to a cake without cutting it into more slices.

machine learning technical

"integrating advanced data science, machine learning, computer vision"

Machine learning is a set of computer programs that learn patterns from large amounts of data and improve their predictions or decisions over time, like a recipe that gets better each time it’s adjusted based on taste tests. For investors it matters because these systems can speed up analysis, spot trends or risks humans might miss, automate routine work, and potentially create competitive advantages or cost savings that affect a company’s performance.

View in glossary

computer vision technical

"integrating advanced data science, machine learning, computer vision"

Computer vision is technology that gives machines the ability to 'see' and make sense of images or video, turning pixels into usable information like object counts, measurements, or activity patterns. For investors, it matters because it enables automation, cost reduction and new product features across industries—from quality checks on factory lines to retail analytics—so companies that adopt effective computer vision can boost efficiency, reduce labor needs and create competitive advantages.

bioinformatics technical

"by combining bioinformatics, chemo-informatics and artificial intelligence"

The use of computer tools and data analysis to organize and interpret large biological datasets, such as DNA, protein or patient information. It matters to investors because it speeds up research, lowers development costs and helps identify promising drug targets, diagnostics or personalized treatments—think of it as using GPS and analytics to find the fastest, most reliable route through vast amounts of lab data.

chemo-informatics technical

"by combining bioinformatics, chemo-informatics and artificial intelligence"

A field that uses computers, databases and statistical methods to organize, analyze and model chemical and molecular information. It turns complex chemical data into searchable patterns, predictions and visual maps—like using GPS and analytics to navigate a vast landscape of possible molecules. It matters to investors because it can speed drug discovery, reduce lab costs and highlight promising compounds earlier, affecting development timelines, budgets and potential returns.

artificial intelligence technical

"by combining bioinformatics, chemo-informatics and artificial intelligence"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Grant will partially fund research to enable faster development, with a higher probability of success, of new plant-based compounds (precision botanics) for the benefit of BioHarvest's CDMO customers and partners

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - July 15, 2026) - BioHarvest Sciences Inc (NASDAQ: BHST) (FSE: 8MV0), a leader in Botanical Synthesis technology and sustainable plant-based molecule development, today announced that the Israel Innovation Authority (IIA) has approved a 4.33 million NIS (approximately USD $1.4 million) grant. This non-dilutive funding will support a new research initiative at BioHarvest integrating advanced data science, machine learning, computer vision and high-throughput digital sensing directly into BioHarvest’s biological development workflows, thereby accelerating its plant cell culture programs.

BioHarvest's new approved research initiative focuses on moving plant cell culture from traditional empirical trial-and-error methods to a highly predictable, data-driven optimization framework. Specifically, by combining bioinformatics, chemo-informatics and artificial intelligence, the platform will systematically predict the success of plant cell propagation and dramatically maximize active metabolite yields.

Dr. Zaki Rakib, Chairman and Chief Executive Officer of BioHarvest, commented, "We are extremely thankful for the additional support from the IIA. This grant, the second we have received from IIA, strengthens the Company's financial position by providing non-dilutive capital support as we additionally implement a more efficient, smarter means for our biological development workflows."

The program will accelerate the development of BioHarvest's advanced computational discovery engine. This platform integrates proprietary predictive machine learning models with real-time digital sensing to rapidly identify optimal pathways and maximize bioactive yields across diverse plant species. Supported by secure, domain-specific scientific knowledge bases, these new capabilities will streamline early-stage R&D, transforming how complex plant-based compounds are forecasted, monitored, and scaled.

This marks the second grant BioHarvest has received from the Israel Innovation Authority this year. While the first grant was dedicated to scaling the manufacturing facility by integrating industrial automation and machine learning on the factory floor, this second grant is focused on transforming the early-stage R&D pipeline through predictive AI. Together, these two distinct yet highly complementary initiatives fuel a technological transformation across the company-bridging the gap between intelligent, data-driven laboratory discovery and high-volume, autonomous commercial production.

The grant was provided by the Israel Innovation Authority in the form of a non-dilutive, zero-interest loan. Repayment is contingent upon the achievement of certain predefined commercial milestones and is expected to be made solely from future revenues generated by the funded project. No equity or equity-linked instruments were issued in connection with the grant.

About the Israeli Innovation Authority (IIA)

The Israeli Innovation Authority is a government entity dedicated to fostering Israel's innovation ecosystem by supporting companies across all stages of technology development, from early research through industrial deployment. For more information, visit https://innovationisrael.org.il/en/.

About BioHarvest

BioHarvest (NASDAQ: BHST) (FSE: 8MV0) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based compounds, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and manufacturing organization (CDMO) on behalf of customers seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products based on its botanical synthesis technology. To learn more, please visit www.bioharvest.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on management's current expectations, beliefs, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. For the CDMO Services Business Unit, there is no assurance of additional future contracts, and readers are cautioned that increased revenue is not necessarily an increase in net income or profitability as costs will likely increase as well. There is no assurance that signed research agreements will proceed past a contracted stage, or that a developed molecule or compound will be commercialized or will generate royalties to the Company. The project being funded is a research project and there is no assurance that future revenues will be generated from the project, and successful commercialization of any compound developed will be subject to consumer preferences, advertising budgets and other factors affecting market acceptance of new products which are uncertain and cannot be assured. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by applicable law. Additional information is contained in the Company's SEC filings, available at http://www.sec.gov.

BioHarvest Company Contact:

Dave Ryan, VP Investor Relations
(604) 622-1186
info@bioharvest.com

Investor Relations Contact:

Chuck Padala, Managing Director
LifeSci Advisors
chuck@lifesciadvisors.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305238

FAQ

What did BioHarvest (NASDAQ: BHST) announce on July 15, 2026 regarding an Israel Innovation Authority grant?

BioHarvest announced approval of a 4.33 million NIS (about USD $1.4 million) grant from the Israel Innovation Authority. According to BioHarvest, this non-dilutive, zero-interest funding will support an AI-driven research program to enhance plant cell culture and precision botanics development.

How will the $1.4 million Israel Innovation Authority grant be used by BioHarvest (BHST)?

The grant will fund integration of data science, machine learning, computer vision and high-throughput digital sensing into BioHarvest’s biological workflows. According to BioHarvest, this aims to create a predictive optimization framework for plant cell propagation and significantly increase active metabolite yields for CDMO customers.

Is the Israel Innovation Authority funding for BioHarvest (BHST) non-dilutive and what are the repayment terms?

Yes, the 4.33 million NIS grant is non-dilutive and carries zero interest. According to BioHarvest, repayment is contingent on predefined commercial milestones and is expected to come solely from future revenues generated by the specific funded project, not from equity issuance.

How does this second 2026 Israel Innovation Authority grant impact BioHarvest’s AI and automation strategy?

This second grant focuses on predictive AI for early-stage R&D, complementing a prior grant for factory automation. According to BioHarvest, together they connect intelligent, data-driven laboratory discovery with high-volume, autonomous commercial production, advancing the company’s technological transformation across its value chain.

What technological platform is BioHarvest (NASDAQ: BHST) developing with the new Israel Innovation Authority grant?

BioHarvest is developing an advanced computational discovery engine integrating predictive machine learning with real-time digital sensing. According to BioHarvest, this platform will rapidly identify optimal pathways, maximize bioactive yields across plant species, and streamline early-stage R&D for complex plant-based compounds and precision botanics.

What benefits does the new AI-driven plant-cell synthesis initiative provide to BioHarvest’s CDMO customers?

The initiative aims to enable faster development and higher success rates for new plant-based compounds. According to BioHarvest, combining bioinformatics, chemo-informatics and AI should boost active metabolite yields, improving efficiency and predictability for CDMO partners seeking sustainable, complex botanical ingredients.