Business
BranchOut Food Inc. Open Letter to Shareholders
BEND, Ore., July 17, 2023 /PRNewswire/ -- BranchOut Food Inc. (Nasdaq: BOF) would like to address all its valued shareholders regarding the recent reduction
About this update from Branchout Food Inc.
[{"type":"text","content":"BEND, Ore., July 17, 2023 /PRNewswire/ -- BranchOut Food Inc. (Nasdaq: BOF) would like to address all its valued shareholders regarding the recent reduction in share price since the initial public offering (IPO). While we understand and share your disappointment, we want to reassure you that our business's fundamentals and strategic plans remain as strong as ever. \nThe current decrease in share price has been perplexing to our management team, considering that we have announced transformative contracts with some of the largest retailers in the world, a significant relationship with the US Army, and other major announcements.\nLate last year, we successfully completed the construction of our new production facility in Peru. This expansion allows us to increase our production capacity to about $30 million to meet existing and future demand while lowering the cost of goods sold (COGs).\nThe company has a highly skilled management team and Board of Directors, led by CEO Eric Healy, who has managed and exited a prior food company through a sale to a private equity firm. Eric Healy's family has established renowned brands like Kettle Brand \"Kettle Chips\" and Kona Brewing, globally recognized CPG brands.\nConsidering the facts discussed above, we believe the Company's current market cap of approximately $12 million is undervalued. Less than 30 days ago, we raised over $7 million from our IPO and have no debt on the balance sheet other than a revolving LOC for production. Our company has very low overhead with our Team primarily focused on securing and fulfilling large retailer orders. BranchOut is structured and positioned for rapid topline growth with minimal SG&A to produce a strong bottom line.\nIt is important to note that about 1,366,547 shares are owned by management and affiliates out of the total outstanding 3,962,940. This limited float further contributes to our opinion that our stock is undervalued.\nBranchOut Food Inc. holds a strong market position, with numerous major retailers and customers. We have developed strategic relationships with key industry leaders that understand the significant value of our proprietary food processing technology.\nWe remain committed to our shareholders and believe that the recent market conditions do not reflect the true value of our company. We encourage you to look beyond short-term flu...