- The Very Good Food Company (VERY) has completed its bought deal offering, raising more than C$8.5 million to fund its US expansion plans
- Under the offering, the company issued a total of 6.5 million units at a price of $1.30 each
- The offering was led by Canaccord Genuity, which elected to exercise its over-allotment option in full
- The proceeds will be used to fund the company’s US expansion strategy, as well as continued product investments and future acquisitions
- The Very Good Food Company (VERY) is currently steady at $1.56 per share
The Very Good Food Company (VERY) has completed its bought deal offering, raising more than C$8.5 million to fund its US expansion plans.
Under the terms of the offering, the company issued a total of 6.5 million units at a price of $1.30 each. These units are comprised of one common share and half of one common share purchase warrant.
Each whole warrant will be exercisable at a price of $2.00 per share at any time until February 7, 2022.
The offering was led by Canaccord Genuity, which exercised its over-allotment option in full and received a cash commission worth eight per cent of the gross proceeds and broker warrants equal to eight per cent of the total number of units sold.
The Very Good Food Company intends to use the proceeds to fund its US expansion plans, as well as for continued investments in its product portfolio through research and development. A portion of the funds may also be used to pursue future acquisitions and for general corporate purposes.
Mitchell Scott, CEO of The Very Good Food Company, said the financing will support the company’s next phase of growth.
“We are delighted with the closing of this oversubscribed financing which will support key components of our growth strategy such as expanding our operations into the United States to access a very large and growing market for plant-based foods.
“We look forward to updating our shareholders as we progress into the next phase of our growth objectives,” he added.
The Very Good Food Company listed on the Canadian Securities Exchange in mid-June via a $4 million initial public offering, and has seen a steady level of growth in its share price.
To date, the company’s shares have risen 11.43 per cent, peaking on July 17 at a price of $1.77 per share.
The Very Good Food Company (VERY) is currently steady at $1.56 per share at 1:20pm EDT.
