Business
BranchOut Food Inc. Announces $3.925M CEO-led Investment Including an Insider PIPE and Convertible note
The combined $3.925M and recently completed $1.4M public offering positions the company to complete the construction of its Peru factory and achieve
About this update from Branchout Food Inc.
[{"type":"text","content":"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\nBEND, 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 a...