(Reuters) – Impossible Foods is discussing a new credit line worth several hundred million dollars with its lenders, as the plant-based meat company braces for the economic fallout of the coronavirus outbreak, people familiar with the matter said on Tuesday.
The move comes as many restaurants, bars and food courts, which source plant-based meat from Impossible Foods, shut down or face empty seats as customers stay home to combat the spread of the coronavirus pandemic.
Impossible Foods expects a financial downturn to weigh on its business, the three sources said. Earlier this week it raised roughly $500 million in a series F funding round to bolster its finances and fund expansion.
The fundraising has also increased the amount of money banks are comfortable lending the company, another factor in its decision to explore the credit line, the sources said.
The sources, who requested anonymity as the matter is private, cautioned that the deliberations are still preliminary and that the final decision will be influenced by how the coronavirus outbreak evolves over the coming weeks. Impossible Foods declined to comment.
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