Funds to be spent on M&A, ecommerce expansion and new production facility in California
Wealth manager Canaccord Genuity has increased its previously agreed upon bought deal offering with plant-based foodtech firm The Very Good Food Company (TVGFC) from $15 million to $20.7 million.
Each of the 4.9 million units purchased will consist of one common share of the company and one-half of one common share purchase warrant of the company, at a price of $3.70 per unit.
The company intends to use the proceeds to fund its new production facility in Patterson, California, as well as to carry out bolt-on acquisitions and fund ecommerce launches and expansion in a number of markets.
The offering is expected to close on 8 July 2021.
Canaccord entered into a previous bought deal offering worth $13.2 million with The Very Good Food Company in November 2020.
The capital was used to fund another production facility in Vancouver, British Columbia.
In March TVGFC acquired the Lloyd-James Marketing Group, a boutique wholesale and food service broker specialising in plant-based retail placements.
Prior to that the group acquired plant-based cheese brand the Cultured Nut as it sought to diversify its product offering.
During its fiscal Q1 results, CEO Mitchell Scott said the firm was looking to expand outside Canada into the US and UK in Q3 2021.
It is on target to be in over 3000 supermarkets by the end of the year.
TVGFC completed its listing on the TSX Venture Exchange in March.
Date published: 16 June 2021