Eat Just Stock (EAJU)

• The competition in the alternative proteins markets is immense, with actual meat also providing a cost-effective substitute. The cost of production of cultivated meat is notoriously high. Science Direct highlights, “The wholesale cost of cell-cultured meat is optimistically projected to be as low as $63/kg,” but “a retail price of $18 or more for a 0.14 kg hamburger will impede consumer adoption.” The success of its GOOD Meat division is dependent upon an eventual economies of scale advantage which will allow it to price its cultivated meats competitively.
• Eat Just also faces regulatory risk and litigation risk. As a consumable products business, it faces regulatory scrutiny from several entities including the Food and Drug Administration (FDA). Any issues with approvals on its ingredients, or issues with accurate representation of its products could harm its overall business.
• Macroeconomic conditions, including the current inflationary and higher rate environment, could adversely affect Eat Just’s business and operations and its ability to raise capital effectively. These risks could include “changes in monetary policy, shifts in the regulatory or tax regime, and political or civil unrest” that affect factors like prices on its raw materials.