Barfresh Completes Over $5.8 Million Financing to Accelerate Growth
March 23 2020 - 8:35AM
InvestorsHub NewsWire
Barfresh Completes
Over $5.8 Million Financing to Accelerate
Growth
Financing Consists
of Issuance of Common Stock at $0.50 per Share and $0.60
Warrants
LOS
ANGELES, CA -- March 23, 2020 -- InvestorsHub NewsWire
-- Barfresh Food
Group, Inc. (the “Company”) (OTCQB:
BRFH), a manufacturer of frozen, ready-to-blend beverages,
today announced that it has entered into binding definitive
agreements for approximately $5.87 million financing. The
components of the financing consist of an aggregate sale of
approximately $5.87 million of common stock at $0.50 per share with
50% warrant coverage with an exercise of $0.60 per share, of which
$3.825 million will be for growth capital and approximately $2
million came from the conversion of existing debt into the current
offering.
Debt Retirement
and Restructuring
Concurrent with
the Company’s current offering, the Company also reduced its
overall debt by approximately $2 million through holders converting
their existing debt into the Company’s current offering of its
common stock and warrants. In addition, the Company and its debt
holders extended the maturity date of approximately $1.1 million of
those certain convertible notes issued in March 2018 to March 2022,
and extended the maturity date of approximately $0.2 million of
those certain convertible notes issued in November 2018 to November
2021.
Riccardo Delle
Coste, the Company’s CEO stated, “This financing dramatically
improves our liquidity and will provide the appropriate capital for
profitable expansion in our many and growing channels throughout
2020 and beyond. We are very well positioned to continue the
penetration in the quick serve restaurant space. In addition,
I believe this is a strong vote of confidence from several of our
significant existing stockholders participating in this
offering.”
Mr.
Delle Coste continued, “We have spent many years establishing an
organization with ample manufacturing capacity, logistics and
distribution network to successfully service our expected new
business. We have dramatically improved our cost structure
and are in a much better position today to efficiently deploy this
growth capital.”
About Barfresh
Food Group
Barfresh Food
Group, Inc. (OTCQB:
BRFH) is a developer, manufacturer and distributor of
ready-to-blend beverages, including smoothies, shakes and frappes,
primarily for restaurant chains and the foodservice industry. The
company's proprietary, patented system uses portion-controlled
pre-packaged beverage ingredients that deliver freshly made frozen
beverages that are quick, cost efficient, better for you and
without waste. Barfresh has an exclusive distribution partnership
with the leading food distributor in North America. For more
information, please visit
www.barfresh.com.
Forward Looking
Statements
Except
for historical information herein, matters set forth in this press
release are forward-looking within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the Company's commercial progress and
future financial performance. These forward-looking statements are
identified by the use of words such as "grow", "expand",
"anticipate", "intend", "estimate", "believe", "expect", "plan",
"should", "hypothetical", "potential", "forecast" and "project",
among others. All statements, other than statements of historical
fact, included in the press release that address activities, events
or developments that the Company believes or anticipates will or
may occur in the future are forward-looking statements. These
statements are based on certain assumptions made based on
experience, expected future developments and other factors the
Company believes are appropriate under the circumstances. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company
and may not materialize. Investors are cautioned that any such
statements are not guarantees of future performance. The contents
of this release should be considered in conjunction with the
warnings, risk factors and cautionary statements contained in the
Company's recent filings with the Securities and Exchange
Commission, including its Annual Report on Form 10K and Quarterly
Report on Form 10Q. Furthermore, the Company does not intend, and
is not obligated, to update publicly any forward-looking
statements, except as required by law.
Contact
John
Mills
ICR
646-277-1254
John.Mills@icrinc.com
Deirdre
Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com