VANCOUVER, British Columbia--(BUSINESS WIRE)--The Very Good Food Company Inc. (NASDAQ: VGFC) (TSXV: VERY.V) (FSE: 0SI) ("VERY GOOD" or the "Company"), a leading plant-based food technology company, is pleased to announce that it has closed its previously announced registered direct offering with certain institutional investors for the purchase and sale of an aggregate of 15,000,000 units of the Company (the "Units") at a price of US$2.00 per Unit for gross proceeds to the Company of approximately US$30,000,000 pursuant to a registered direct offering (the "Offering").
A.G.P./Alliance Global Partners acted as lead placement agent for the Offering and Roth Capital Partners (together, the "Placement Agents") acted as co-placement agent for the Offering.
Each Unit was comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of US$2.35, subject to adjustment in certain circumstances, until October 19, 2026.
VERY GOOD intends to use the net proceeds from the Offering to scale its operations, to expand its geographical reach, for accretive acquisitions within the plant-based food sector, for research and development, for marketing initiatives and for general corporate and other working capital purposes.
The Placement Agents received a cash commission equal to 6.0% of the gross proceeds of the Offering and an amount of compensation warrants of the Company (the "Compensation Warrants") equal to 3.5% of the aggregate number of Units issued pursuant to the Offering. Each Compensation Warrant entitles the holder thereof to purchase one Common Share at an exercise price of US$2.50, subject to adjustment in certain circumstances, commencing on April 14, 2022 and expiring on April 14, 2025.
The Offering was made in the United States only under the Company's amended and restated short form base shelf prospectus dated October 5, 2021 (the "Base Shelf Prospectus"), filed with the securities regulatory authorities in Canada, and included in the corresponding registration statement on Form F-10 (the "Registration Statement") filed by the Company with the U.S. Securities and Exchange Commission ("SEC") under the U.S./Canada Multijurisdictional Disclosure System ("MJDS"). The Company filed a prospectus supplement (the "Supplement") to the Base Shelf Prospectus with the applicable securities regulatory authorities in Canada. The Supplement was also filed with the SEC as a prospectus supplement to the base prospectus included in the Registration Statement. Copies of the Supplement, including the Base Shelf Prospectus, are available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.