BioHarvest Sciences Awarded $1.6 Million USD Grant from the Israeli Innovation Authority to Advance Second-Generation Botanical Synthesis Platform

Rhea-AI Summary

BioHarvest (NASDAQ: BHST) was awarded a $1.6 million grant from the Israeli Innovation Authority under its Bio-Convergence program on December 18, 2025.

The non-dilutive, zero-interest loan will fund development of the company’s second-generation Botanical Synthesis™ platform, including AI tools for process optimization, larger bioreactors for higher-volume production, and expanded autonomous manufacturing to improve scalability and unit economics.

BioHarvest reports it is fully funded for current plans with approximately $25 million in cash; repayment of the IIA loan is contingent on predefined commercial milestones and expected to be paid from future project revenues.

Positive

• $1.6M non-dilutive IIA funding awarded
• Company reports approximately $25M cash on balance sheet
• Grant targets AI, larger bioreactors, and automation to improve scale

Negative

• IIA loan repayment is contingent on commercial milestones
• Repayment expected from future project revenues, creating future cash obligation

Key Figures

IIA grant amount $1.6 million Non-dilutive funding from Israeli Innovation Authority Bio-Convergence program

Cash balance approximately $25 million Cash on balance sheet cited as supporting current strategic and operational plans

Market Reality Check

$5.41 Last Close

Volume Volume 114,202 is 1.55x the 20-day average of 73,892, indicating elevated trading before the grant news. high

Technical BHST traded at $5.165, below its $7.50 200-day moving average and 59.65% under the $12.80 52-week high.

Peers on Argus 1 Up

BHST was down 6.09% while key packaged foods peers were mixed: HAIN up 5.41%, ABVE down 6.88%, DDC down 8.3%, and others showing smaller moves. A single peer (ATPC) appeared in momentum scanners, moving 4.33% up without news, supporting a stock-specific context for BHST.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Product launch	Positive	+3.0%	Launch of VINIA Blood Flow Hydration into U.S. electrolyte drink market.
Nov 13	Earnings update	Positive	-7.6%	Q3 2025 results with 39% YoY revenue growth but ongoing net loss.
Nov 12	Conference & update	Positive	+14.8%	Conference attendance, product momentum, CDMO milestones, and $19.9M equity raise.
Nov 10	Equity offering close	Neutral	+2.5%	Closing of $19.9M underwritten offering at $7.00 per share.
Nov 07	Equity offering price	Negative	-8.9%	Pricing of $17.4M upsized public offering at $7.00 per share.

Pattern Detected

Recent BHST news often moved the stock directionally with the headline, with 3 aligned reactions and 1 divergence across product, earnings, and financing updates.

Recent Company History

Over the last six weeks, BHST has combined growth initiatives with balance-sheet actions. November offerings raised $17.4M–19.9M at $7.00 per share to fund R&D, manufacturing, marketing, CDMO expansion, and debt reduction. A conference appearance and equity raise on Nov 12, 2025 coincided with a 14.83% gain, while Q3 results on Nov 13, 2025 with $9.1M revenue and ongoing losses saw a -7.59% move. The new IIA grant adds non-dilutive funding alongside this recent capital raising.

Market Pulse Summary

This announcement adds a non-dilutive $1.6 million grant from the Israeli Innovation Authority to an already strengthened balance sheet with about $25 million in cash. Funds target second-generation Botanical Synthesis™ capabilities, including AI integration, larger bioreactors, and more autonomous manufacturing. In context of recent equity raises and product launches, investors may watch execution on scale-up, commercialization milestones tied to the grant’s repayment terms, and any follow-on updates to manufacturing or CDMO activity.

Key Terms

botanical synthesis technical

"pioneering its proprietary Botanical Synthesis™ platform, today announced"

Botanical synthesis is the lab-based creation or replication of plant-derived compounds, either by chemically building the molecules or by using engineered organisms to produce them, like recreating a recipe in a factory instead of harvesting from a garden. For investors it matters because it can lower costs, secure supply, protect patents, and affect regulatory review and market access for products that rely on consistent, scalable plant ingredients.

bio-convergence technical

"under the IIA's Bio-Convergence program, which supports technologies"

The blending of biology with fields like engineering, computing, materials science and data analysis to create new products, tools or processes that use living systems or biological principles. For investors, bio-convergence can signal startups and established firms creating entirely new markets or cost-saving breakthroughs — think of it like different industries teaming up to invent a new kind of machine; it can boost growth potential but also brings longer development timelines, technical risk and regulatory complexity.

bioreactor technical

"Significant increases in bioreactor size, supporting higher-volume production"

A bioreactor is a controlled vessel where living cells or microbes are grown to produce medicines, vaccines, enzymes or other biological products. Think of it like a high-tech kitchen or greenhouse that carefully controls temperature, nutrients and mixing so cultures can grow reliably; investors care because a bioreactor’s size, reliability and efficiency determine how quickly and cheaply a company can make products at scale and meet regulatory quality standards.

autonomous manufacturing technical

"Expanded autonomous manufacturing functions, enhancing scalability"

Autonomous manufacturing is a production system where machines, robots and software plan, control and adjust the making of goods with little human direction—like a self-driving factory where equipment coordinates itself much like smart appliances in an automated kitchen. It matters to investors because it can lower labor and error costs, speed up output, improve product consistency and make supply chains more resilient, all of which can raise profit margins and change capital and operational spending needs.

plant cell culture medical

"producing plant-based active compounds through controlled plant cell culture"

A plant cell culture is a laboratory method that grows plant cells, tissues, or tiny plant fragments in controlled liquid or gel trays instead of in soil, like keeping a miniature garden under glass. Investors care because it lets companies produce plant-based compounds—such as flavors, pigments, medicines or active ingredients—more reliably and at scale, reducing reliance on crops, lowering supply-chain risk, and creating opportunities for recurring revenue and intellectual property.

non-dilutive financial

"The non-dilutive funding will support the development of new"

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.

zero-interest loan financial

"provided by the Israel Innovation Authority in the form of a non-dilutive, zero-interest loan"

A zero-interest loan is borrowed money that must be repaid but carries no interest charge, so the borrower only returns the original amount. For investors, this lowers a borrower’s financing cost and can boost short-term cash flow and reported profits compared with loans that require interest payments; think of it like borrowing a tool from a neighbor without paying rental fees. It also affects a company’s risk profile and valuation because free financing can change future cash needs and returns.

data analytics technical

"tools for process optimization, data analytics, and real-time decision-making"

Data analytics is the process of examining large amounts of information to uncover patterns, trends, and insights. It helps investors make better decisions by turning complex data into clear, useful knowledge, much like how a detective finds clues to solve a mystery. This approach enables smarter planning and risk management in financial activities.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - December 18, 2025) - BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) ("BioHarvest" or the "Company"), a biotechnology company pioneering its proprietary Botanical Synthesis™ platform, today announced that it has been awarded a $1.6 million grant from the Israeli Innovation Authority (IIA). The grant was approved under the IIA's Bio-Convergence program, which supports technologies at the intersection of biology, engineering, data science, and artificial intelligence.

The non-dilutive funding will support the development of new innovative capabilities for BioHarvest's second-generation Botanical Synthesis™ process, enabling the Company to continue advancing its biotechnology innovation while maintaining a strong balance sheet.

The grant will be used to accelerate:

• Integration of artificial intelligence-based tools for process optimization, data analytics, and real-time decision-making
• Significant increases in bioreactor size, supporting higher-volume production and improved unit economics
• Expanded autonomous manufacturing functions, enhancing scalability, reproducibility, and operational efficiency

The Israeli Innovation Authority selected BioHarvest as one of the companies operating within the Bio-Convergence domain, recognizing the Company's differentiated approach to producing plant-based active compounds through controlled plant cell culture rather than traditional agriculture.

Importantly, as a result of prior equity transactions, BioHarvest is fully funded to execute its current strategic and operational plans and maintains a strong balance sheet with approximately $25 million in cash. The IIA grant further strengthens the Company's financial position by supporting advanced R&D without shareholder dilution.

"This non-dilutive grant from the Israeli Innovation Authority is the first received through the efforts of our Strategic Grants team, and it is both a validation of our technology leadership and a strategic financial advantage," said Ilan Sobel, CEO of BioHarvest. "It allows us to accelerate the evolution of our Botanical Synthesis™ platform by integrating AI, automation, and larger-scale bioreactors, while preserving capital and maintaining balance sheet strength as we move toward our second-generation manufacturing capabilities."

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.

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.

About BioHarvest

BioHarvest (NASDAQ: BHST) (FSE: 8MV) 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 production organization (CDMO) on behalf of customers seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products, which includes dietary supplements. To learn more, please visit www.bioharvest.com.

Forward-Looking Statements

Information set forth in this news release might include forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHST does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures.

Contacts:

BioHarvest Corporate Contact:
Dave Ryan, VP Investor Relations
+1 (604) 622-1186
info@bioharvest.com

Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
+1 (949) 259-4987
BHST@mzgroup.us

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278495

FAQ

How much funding did BioHarvest (BHST) receive from the Israeli Innovation Authority on December 18, 2025?

BioHarvest received a $1.6 million grant from the Israeli Innovation Authority.

Is the $1.6M IIA award to BioHarvest (BHST) dilutive to shareholders?

No; the award is described as a non-dilutive, zero-interest loan with no equity issued.

What will BioHarvest (BHST) use the IIA grant funding for?

Funding will accelerate AI integration, larger bioreactors, and expanded autonomous manufacturing for its Botanical Synthesis™ platform.

How does the IIA loan affect BioHarvest's (BHST) finances?

The grant strengthens R&D funding without dilution; the company reports approximately $25M cash to execute current plans.

Will BioHarvest (BHST) have to repay the IIA grant and from what source?

Repayment is contingent on predefined commercial milestones and is expected to be made solely from future revenues generated by the funded project.

What program approved BioHarvest's (BHST) grant and why is it relevant?

The award was approved under the IIA's Bio-Convergence program, which supports projects combining biology, engineering, data science, and AI.