Naturally Splendid Enterprises Ltd has announced its intention to complete a non-brokered private placement financing by issuing 100 million company units, at a price of $0.03 per unit, for gross proceeds of up to C$3 million.
The company said proceeds from the offering will be directed primarily towards purchasing and installing a new manufacturing line, to produce plant-based food entrees as well as for day-to-day operations.
“The combination of a new plant-based production line and new packaging line is game changing for Naturally Splendid,” Naturally Splendid CEO Craig Goodwin said in a statement.
READ: Naturally Splendid announces NATERA Plant-Based Foods will be offered through Sealand Quality Foods
“Manufacturing ourselves rather than importing has several significant operational advantages including reduced cost per unit, inventory controls and the ability to customize production to meet the requirements of clients in Canada and the United States,” Goodwin added.
Naturally Splendid noted its state-of-the-art manufacturing line will be installed in the company’s existing 20,000 square foot manufacturing facility in Pitt Meadows, British Columbia and replicates the manufacturing line currently used in the production facility in Australia, in order to produce the plant-based products currently being imported from Flexitarian Foods Pty Ltd, a division of Australia's largest plant-based manufacturer.
It added that a portion of the funds raised will also be directed to facility upgrades, including an industrial freezer as well as increasing electrical and plumbing infrastructure.
The company said, once completed, the facility will be capable of manufacturing up to 10 tons per day of finished plant-based alternatives for beef, chicken, pork, fish and shellfish, with the amount expected to increase to 20 tons daily when efficiencies are attained.
Each unit of the private placement consists of one Naturally Splendid common share plus one common share purchase warrant, entitling the holder to purchase one additional common share for a period of two years from the date of the issue at an exercise price of $0.05 per share.
As well, Naturally Splendid said it may pay finders a fee in cash and/or share purchase warrants in connection with the offering, which is available to “accredited investors” and existing shareholders who held Naturally Splendid stock on November 16, 2021.
The financing replaces the previously-announced private placement offering at $0.05 per unit.
Naturally Splendid has established a number of healthy, functional foods under recognized brands such as NATERA Sport, NATERA Hemp Foods, CHII, Elevate Me, and Woods Wild Bar, and most recently NATERA Plant Based Foods, a line of delicious plant-based meat alternatives for the rapidly growing plant-based market segment.
Contact Sean at sean@proactiveinvestors.com