Dairy-alternative start-up plans to scale business with latest capital raise of C$4m as demand for its products increases
Canadian dairy-alternative start-up Plant Veda is planning a direct listing on the Canadian Securities Exchange (CSE) in June under the ticker symbol MILK.
The company expects to reach a market cap of approximately C$16.5 million (£9.7 million).
The company, which produces a selection of plant-based milks, yoghurts and coffee creamers, raised C$4 million (£2.3m) in private placement ahead of its listing.
The capital is being used to fund a new R&D and production facility that will meet the growing demand for its products, as well as national and international expansion plans.
The facility is based in British Columbia and has the capacity to house around 200 staff members. Current upgrades to the innovation centre are expected to be completed in Q4.
“There is a significant demand for our products at this time as the [overall] demand increases for dairy alternatives,” Plant Veda director and president Michael Yang told NutritionInvestor.
“We have leased a new facility to meet with the growing demand for our products and to expand our product lines. Our plan for scaling is to increase capacity with the capital recently raised,” he added.
Plant Veda’s products are available in over 100 retailers across North America, including Whole Foods and Save-On-Foods.
It also powers a D2C ecommerce platform to meet consumer demands for buying products online.
“What we are focused on is creating the best products out there that will make us louder in the market. We’ve created products that are unique by finding something that is better and higher in health benefits, flavour and quality,” Yang said.
“The market is still in its infancy and we actually need more dairy-alternative companies so there is a bigger collective voice in converting the remaining $480 billion [of the global dairy industry] into plant-based dairy,” he concluded.
The CSE offers simplified reporting requirements and also reduces the barriers to listing compared to primary exchanges like the Toronto Stock Exchange or the Nasdaq.
Date published: 8 June 2021