The combined $3.925M and recently completed $1.4M public offering positions the company to complete the construction of its Peru factory and achieve profitability with its current customer pipeline
BEND, Ore., July 24, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced the closing of a $525,000 investment in company led by its CEO, Eric Healy, who invested $400,000, with Eagle Vision Fund LP (an entity affiliated with the Company’s CFO) investing $100,000, and the Company’s President investing $25,000, in exchange for the issuance of 692,529 shares of common stock . In addition, the Company closed a convertible note for $3,400,000 with Kaufman Kapital. Complete details of these transactions can be found in the Company’s Current Report on 8-K filed with the Securities and Exchange Commission.
The capital will be used to complete the build out of the Company’s large-scale production facility in Peru, including for its 3rd and 4th Radiant Energy Vacuum (REV) machines built by EnWave Corporation (TSX-V: ENW | FSE: E4U). The Company expects the new factory to be online starting in Q4 and to have approximately $40M in production capacity and estimated margins of 40-50%.
BranchOut Food is currently filling orders valued at over $8 million from some of the country’s largest retailers but has turned down additional orders in the trailing twelve months as it awaits the new factory opening. Eric Healy, CEO of BranchOut Food, said: “We believe BranchOut is at its inflection point. This capital will allow us to complete the construction of our large-scale production factory in Peru, giving us the capacity to manufacture our orders with significantly improved margins and control. We have a robust pipeline of current and prospective customers, and this will position us for profitable growth.”
Daniel Kaufman, founder of Kaufman Kapital added: “The combination of BranchOut’s innovative GentleDry technology, Peru’s high-quality, low-cost produce, and a seasoned leadership team presents a compelling opportunity. We are thrilled to support and partner with them.” Concurrent with the new financings, Deven Jain, an affiliate of Kaufman Kapital, joins BranchOut’s board of directors.
About Kaufman Kapital:
Founded by entrepreneur and investor Daniel Kaufman, Kaufman Kapital seeks to generate attractive, long-term risk adjusted returns. Kaufman focuses on identifying inflecting, misunderstood small cap businesses poised to generate significant free cash flow in both the public and private markets. By positioning themselves as not only long-term investors, but also partners, they are able to provide their portfolio companies with the guidance they need to successfully complete their transformation.
About BranchOut Food Inc.
BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s exclusively licensed GentleDry Technology is the next generation in dehydration technology, preserving up to 95% of the original nutrition of fresh fruits and vegetables. BranchOut’s licensed technology is protected by more than 17 patents. BranchOut Food is proud to be a leading provider of high-quality dehydrated fruit and vegetable-based products and its commitment to quality and innovation sets it apart as a trusted brand and private label supplier. For more information about BranchOut Food Inc. and its products, please visit www.branchoutfood.com and follow us on LinkedIn and Twitter.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," “position”, "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
