BioHarvest Sciences Inc (NASDAQ:BHST) said on Thursday it has been awarded a $1.6 million grant from the Israeli Innovation Authority (IIA) to support the development of its second-generation Botanical Synthesis manufacturing process.
The biotechnology company said the funding was approved under the IIA’s Bio-Convergence program, which backs technologies combining biology, engineering, data science and artificial intelligence.
BioHarvest said the grant will be used to accelerate the integration of artificial intelligence tools for process optimization and data analytics, expand bioreactor capacity to enable higher-volume production, and enhance autonomous manufacturing functions to improve scalability and operational efficiency.
The Israeli Innovation Authority selected BioHarvest as a company operating in the bio-convergence domain, citing its approach to producing plant-based active compounds through controlled plant cell culture rather than traditional agriculture.
The Israeli Innovation Authority is a government body that supports Israel’s innovation ecosystem, from early-stage research to industrial deployment.
The company said it is fully funded to execute its current plans and holds about $25 million in cash, adding that the grant further strengthens its balance sheet by supporting advanced research and development without shareholder dilution.
“This non-dilutive grant from the Israeli Innovation Authority is both a validation of our technology leadership and a strategic financial advantage,” CEO Ilan Sobel said in a statement.
The funding was provided in the form of a non-dilutive, zero-interest loan, BioHarvest said. Repayment is contingent on achieving predefined commercial milestones and is expected to come solely from future revenues generated by the funded project. No equity or equity-linked instruments were issued in connection with the grant.