Naturally Splendid Enterprises Ltd said it has completed the first tranche of its previously-announced, non-brokered private placement financing, raising gross proceeds of C$2,150,515 by issuing 71,683,846 company units at a price of C$0.03 per unit.
Naturally Splendid noted that proceeds of the first tranche will be directed primarily towards the purchase of new manufacturing equipment and facility upgrades to accommodate the manufacturing of plant-based entrees as per the company's 10-year exclusive manufacturing and distribution agreement with Flexitarian Foods Pty Ltd, as well as inventory from key suppliers, general working capital purposes, accrued management fees of C$278,371.71, and future management fees totaling C$108,000.
“Manufacturing in Canada rather than importing from Australia has many advantages, including increased margins due in part to reduced transport cost, optimizing inventory levels, as well as incorporating Canadian-grown ingredients,” Naturally Splendid CEO Craig Goodwin said in a statement.
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“Implementing the fundamentals of a plant-based product line that has already proven successful in Australia creates a competitive advantage for the company, and we look forward to updates as the lines are readied for production,” Goodwin added.
Each unit of the first tranche consisted 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.
Naturally Splendid added that certain company officers and directors purchased a total of 7,584,720 units under the first tranche.
The company paid finders fees of $55,650 and issued a total of 1,715,000 warrants in connection with the first tranche of the financing.
The securities issued under the first tranche are subject to restrictions from resale for a period of four months and a day pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
In addition, Naturally Splendid reported that it has begun the process of retrofitting its existing food manufacturing facility beginning with the installation of two packaging lines.
The two packaging lines have been selected for the array of products and packaging types it is designed to process, thus optimizing the opportunity to penetrate multiple sales channels.
The first packaging line will be operational in January 2022, with the second packaging line coming on-stream shortly thereafter, creating new opportunities specifically for the retail market, according to the company.
Founded in 2010, Naturally Splendid Enterprise runs a Safe Quality Food Level 2 certified food manufacturing facility outside Vancouver. The company has established a slew of healthy, functional foods under brands such as Natera Sport, Natera Hemp Foods, CHII, Elevate Me, Woods Wild Bar, and more recently Natera Plant-Based Foods.
Contact Sean at sean@proactiveinvestors.com