VANCOUVER, BC, April 4,
2022 /CNW/ - The Very Good Food Company Inc.
(NASDAQ: VGFC) (TSXV: VERY.V) (FSE: OSI) ("VERY GOOD" or the
"Company"), a leading plant-based food technology company,
today announced that Mitchell
Scott's employment as Chief Executive Officer has been
terminated effective immediately. The Company also announced that
James Davison has resigned as Chief
Research & Development Officer and as a member of the board of
directors as of April 1, 2022.
In lieu of immediately filling the role of Chief Executive
Officer, VERY GOOD has temporarily created an Executive Committee
consisting of senior executives from within the Company. The
Executive Committee structure will be used by the organization to
review and approve key organizational, financial, operational and
strategic decisions for the Company, by drawing upon the collective
knowledge, experience, business acumen and skills of the senior
management team.
A search for a new Chief Executive Officer is being initiated by
the Nomination Committee with the help of a leading Vancouver based recruiting agency.
"VERY GOOD is at an important juncture, and we are taking
decisive steps. Our focus is to continue to build on our brand and
reputation and grow our market share in the plant-based meat
segment while optimizing our operations towards a path to
profitable growth", stated Ana
Silva, President of VERY GOOD, who is also a member of the
Executive committee.
Ms. Silva continued: "As announced on March 16, 2022, VERY GOOD is implementing
cost improvement measures as it transitions from a focus on top
line growth, to a focus on achieving sustainable, profitable
growth. These measures include:
Improve the economics of the e-commerce business. The
digital marketing costs to acquire new customers through our
e-commerce business have increased over the last year such that it
impedes the profitability of this channel. The Company is
shifting the focus from digital marketing campaigns that are aimed
at acquiring new customers to our existing subscribers and those
customers that are driven to our website because of our existing
brand awareness and equity.
Right-size the organization through a workforce
reduction. A workforce reduction will occur across multiple
business operations which will result in a sizable reduction in
total annual salaries. The Company is also evaluating different
options for consolidating its production facilities to improve
efficiencies.
"As we go forward, we will continue to execute against a strong
set of strategies that will help us to further drive our top line
growth by expanding our distribution points and improving our
customer and consumer marketing model. And while we expect some
volatility in the next couple of quarters as we set up cost
improvement initiatives and work to streamline our operations, our
long-term growth thesis remains intact as we continue to lead and
innovate within the plant-based food industry", said Ana Silva, President.
The Q4 and Fiscal Year End 2021 Conference Call has been
scheduled for Wednesday, April 6,
2022 to discuss the business outlook. This conference call
includes a live Q&A session hosted by the members of the
Executive Committee.
About The Very Good Food Company
Inc.
The Very Good Food Company Inc. is an emerging plant-based food
technology company that produces nutritious and delicious
plant-based meat and cheese products under VERY GOOD's core brands:
The Very Good Butchers and The Very Good Cheese
Co. www.verygoodfood.com.
OUR MISSION IS LOFTY, BADASS BUT BEAUTIFULLY SIMPLE: GET
MILLIONS TO RETHINK THEIR FOOD CHOICES WHILE HELPING THEM DO THE
WORLD A WORLD OF GOOD. BY OFFERING PLANT-BASED FOOD OPTIONS SO
DELICIOUS AND NUTRITIOUS, WE'RE HELPING THIS KIND OF DIET BECOME
THE NORM.
ON BEHALF OF THE VERY GOOD FOOD COMPANY INC
Ana Silva
President and Interim CFO
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws in Canada and "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, including Section 21E of the Securities
Exchange Act of 1934, as amended (collectively referred to as
"forward-looking information"), for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes.
Forward-looking information may be identified by words such as
"plans", "proposed", "expects", "anticipates", "intends",
"estimates", "may", "will", and similar expressions.
Forward-looking information contained or referred to in this news
release includes, but is not limited to: the Company's
implementation of cost improvement measures and the components
thereof as they relate to the Company's e-commerce business,
workforce reductions and the consolidation of production
facilities; management's ability to execute on the cost improvement
measures and achieve the benefits to be derived therefrom;
management's ability to optimize operations towards a path to
profitable growth, drive top line growth, build brand awareness,
increase market share, lead and innovate in the plant-based
industry; the formation and intended function of the Company's
executive committee and the search for a new Chief Executive
Officer. Forward-looking information is based on a number of
factors and assumptions which have been used to develop such
information, but which may prove to be incorrect including, but not
limited to, material assumptions with respect to the Company's
ability to successfully implement the cost improvement measures and
achieve their intended benefits, the availability of sufficient
financing on reasonable terms or at all to fund VERY GOOD's capital
and operating requirements, the Company's ability to accurately
forecast customer demand for its products and manage its inventory
levels, continued demand for VERY GOOD's products, continued growth
of the popularity of meat alternatives and the plant-based food
industry, no material deterioration in general business and
economic conditions, the successful placement of VERY GOOD's
products in retail stores, the Company's ability to remain listed
on the Nasdaq, VERY GOOD's ability to successfully enter new
markets and manage its international expansion, VERY GOOD's ability
to obtain necessary production equipment and human resources as
needed, VERY GOOD's relationship with its suppliers, distributors
and third-party logistics providers, and management's ability to
position VERY GOOD competitively. Although the Company believes
that the expectations reflected in such forward-looking information
are reasonable, undue reliance should not be placed on
forward-looking information because VERY GOOD can give no assurance
that such expectations will prove to be correct. Risks and
uncertainties that could cause actual results, performance or
achievements of VERY GOOD to differ materially from those expressed
or implied in such forward-looking information include, among
others, the impact of, uncertainties and risks associated with
negative cash flow and future financing requirements to sustain and
grow operations, limited history of operations and revenues and no
history of earnings or dividends, competition, risks relating to
the availability of raw materials, risks relating to regulation on
social media, expansion of facilities, risks related to credit
facilities, dependence on senior management and key personnel,
availability of labour, general business risk and liability,
regulation of the food industry, change in laws, regulations and
guidelines, compliance with laws, risks related to third party
logistics providers, unfavorable publicity or consumer perception,
increased costs as a result of being a United States public company, product
liability and product recalls, risks related to intellectual
property, risks relating to co-manufacturing, risks related to
expansion into the United States;
risks related to our acquisition strategy, taxation risks,
difficulties with forecasts, management of growth and litigation as
well as the risks associated with the ongoing COVID-19 pandemic.
For a more comprehensive discussion of the risks faced by VERY
GOOD, please refer to VERY GOOD's most recent Annual Information
Form filed with Canadian securities regulatory authorities at
www.sedar.com and as an exhibit to the Form 6-K filed with the SEC
on April 1, 2022 and available at
www.sec.gov. The forward-looking information in this news release
reflects the current expectations, assumptions and/or beliefs of
the Company based on information currently available. Any
forward-looking information speaks only as of the date of this news
release. VERY GOOD undertakes no obligation to publicly update or
revise any forward-looking information whether because of new
information, future events or otherwise, except as otherwise
required by law. The forward-looking information contained in this
news release is expressly qualified by this cautionary
statement.
None of the Nasdaq Stock Market LLC, TSX Venture Exchange, the
SEC or any other securities regulator has either approved or
disapproved the contents of this news release. None of the Nasdaq,
the TSX Venture Exchange or its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange),
the SEC or any other securities regulator accepts responsibility
for the adequacy or accuracy of this news release.
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SOURCE The Very Good Food Company Inc.