Else Nutrition Holdings Inc (OTCQX:BABYF, TSX-V:BABY) announced plans to raise up to $15.05 million via a marketed public offering of 7 million units priced at $2.15 per unit.
The Vancouver-based company — dedicated to producing plan-based food products for infants and adults — will offer the units for sale through a syndicate of underwriters led by Stifel Nicolaus Canada Inc and Canaccord Genuity (TSX:CF, LSE:CF) Corp acting as the co-lead underwriters and co-bookrunners.
READ: Else Nutrition successfully completes first production trial run of its novel plant-based infant formula
Each unit will be comprised of one share in the company capital and one-half of one warrant. Each warrant will be exercisable to acquire one share for a period of 60 months following the closing of the offering at an exercise price of $2.70.
The underwriters will have the overallotment option, allowing them to purchase, or find substituted purchasers for up to an additional 1.05 million units — equal to 15% of the number of units sold — up to 30 days after the closing, pursuant to the offering at the issue price to cover overallotments.
Else Nutrition said it is hoping to use the net proceeds obtained from the offerings towards establishing a manufacturing facility, acquire inventory, fund research and development including clinical studies, fund sales and marketing and for general corporate purposes.
The offering is scheduled to close on October 21, 2021, and will take into consideration conditions including the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Else's Plant-Based Nutrition for Toddlers was recently ranked the top seller in the baby and toddler formula category on Amazon.com. The company’s advisory board is being led by individuals who have previously held positions at prestigious academic institutes including Pediatrics at Harvard Medical School, Boston Children's Hospital, and Schneider Children's Medical Center of Israel.
Contact the author at ritika@proactiveinvestors.com