Vancouver, British Columbia--(Newsfile Corp. - September 3, 2020) - The Very Good Food Company Inc. (CSE: VERY) (OTC: VRYYF) (FSE: 0SI) ("VGF" or the "Company") is pleased to announce that it is proceeding with its planned expansion into the U.S. market with a new strategically located California production facility that will significantly increase VGF's production capacity and support growth in the Company's wholesale and ecommerce sales in the United States.
California Production Facility
On September 1, 2020, the Company signed a lease for approximately 25,000 square feet of space in a fully built-out food production facility located in Patterson, California (the "California Facility"). The California Facility requires minimal renovations as it already contains key food production infrastructure such as coolers and freezers, allowing for it to be brought online on an expedited time frame. When the initial 25,000 square feet is operating at full capacity after a ramp up period, the facility is anticipated to have a maximum production volume of 550,000 lbs per week to supply demand for VGF's products in the U.S. market. Under the terms of the lease, VGF has a right of first refusal on an additional 25,000 square feet in the same building to double the footprint of its facility. Within the overall complex, over 500,000 square feet of warehouse space is also available to the Company for cold storage as its operations expand.
The lease for the California Facility provides for an initial term of five years and seven months with renewal options for two consecutive five year terms. The base monthly rent under the lease is US$24,743 with the first payment due April 1, 2021.
The California Facility is strategically located on the same property as one of VGF's recently announced third party logistics providers such that product can be delivered for distribution by way of a short-haul forklift at minimal cost with no time in transit. The California Facility is also located on key shipping routes for ground transportation to wholesale clients and in close proximity to key suppliers of input products.
CEO Mitchell Scott stated: "After closing our oversubscribed bought deal financing in early August, we are now able to move ahead with an accelerated expansion into the U.S. market. The California Facility is more than double the size of our future Vancouver facility, and will be capable of substantially larger production volume. With the strong demand we are currently experiencing for our products, finding a facility that could become operational quickly was key, and being located on the doorstep of a key logistics partner made this location an excellent fit."
Corporate Update
VGF today also reports that it has updated the employment and compensation terms for its Chief Executive Officer, Mitchell Scott and Chief Research and Development Officer, James Davison to better align with the Company's current stage of operations and growth. As part of these new arrangements, and in recognition of their invaluable contributions over the past 12 months including the advance of an operating loan to VGF for interim financing prior to completion of the initial public offering, Mitchell and James will be granted a bonus, payable in either cash or VGF shares at their option, in the amount of 160,000 shares or the equivalent cash value based on the closing price on the date of election of the bonus option. Other equity components of the executives' compensation will include the grant of 50,000 shares to each based on the achievement of certain performance milestones over the next three to nine months as well as future awards under VGF's equity-based compensation plans in place from time to time.
About The Very Good Food Company
The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.
For further information, please contact:
Mitchell Scott
Chief Executive Officer and Director
Kevan Matheson
Corporate Communications and Investor Relations
Email: invest@verygoodbutchers.com
Phone: +1 855-472-9841
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not be limited to: management's belief that the proposed California Facility will significantly increase production capacity and support growth in the Company's wholesale and ecommerce sales in the United States; the Company's expectation that the California Facility can be brought online quickly; the positive attributes of the California Facility including its location and existing infrastructure and the synergies and cost savings the Company expects to derive therefrom; and the current strong demand for the Company's products.
Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations; dilution; limited history of operations and revenues and no history of earnings or dividends; competition; economic changes; and the impact of and risks associated with the ongoing COVID-19 pandemic. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
