Goodfood Announces New $13.5 Million Financing
November 15 2018 - 7:30AM
Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: FOOD)
announced the closing of a $13.5 million secured financing from
Desjardins Capital Markets. The proceeds from the financing will be
used to fund expansion capital expenditures, invest in automation,
refinance the Company’s long-term debt ($2.0 million) and for
general corporate purposes.
“This new financing significantly enhances our
financial capacity and flexibility without diluting shareholders,
as we aim to be the lowest cost producer in our industry in order
to create the most value for our customers and investors. It will
allow us to continue to pursue our aggressive growth strategy,
further invest in automation to generate improved efficiencies and
complete the recently announced expansion of our Eastern Canada
facility which will increase our national sales capacity to $500
million,” said Jonathan Ferrari, Chief Executive Officer.
The debt financing consists of a secured
three-year term loan of $10 million, a $2.5 million revolving
credit facility and $1.0 million in other short-term financing. The
term loan and the revolving credit facility are bearing variable
interest at bankers’ acceptance rate plus 2.50%. The term loan will
be repayable in quarterly instalments of $125,000 beginning on
December 4, 2020 with a bullet repayment of the balance at the end
of the three-year term.
About Goodfood Goodfood is a
leading home meal solutions company in Canada, delivering fresh
ingredients that make it easy for subscribers to prepare delicious
meals at home every week. Goodfood’s objective is to take the
hassle out of cooking, leaving subscribers with the fun part -
cooking, sharing with family and eating. Subscribers select their
favorite recipes from a variety of original dishes online. The
Company prepares a personalized box of fresh ingredients and
delivers it to the subscriber's doorstep with easy step-by-step
instructions. Headquartered in Montréal, Canada, Goodfood had
89,000 active subscribers as of August 31, 2018.
www.makegoodfood.ca
For further
information:Philippe Adam, Chief Financial Officer 1(855)
515-5191IR@makegoodfood.ca
Forward-Looking Information
This release contains information that may be
considered “forward-looking information” within the meaning of
applicable Canadian securities legislation. Such forward-looking
information includes, but is not limited to, information with
respect to our objectives and the strategies to achieve these
objectives, as well as information with respect to our beliefs,
plans, expectations, anticipations, estimates and intentions.
Forward-looking information is identified by the use of terms and
phrases such as “may”, “would”, “should”, “could”, “expect”,
“intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”,
or “continue”, the negative of these terms and similar terminology,
including references to assumptions, although not all
forward-looking information contains these terms and phrases.
Forward-looking information is provided for the purposes of
assisting the reader in understanding the Company and its business,
operations, prospects and risks at a point in time in the context
of historical and possible future developments and therefore the
reader is cautioned that such information may not be appropriate
for other purposes. Forward-looking information is based upon a
number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those that are
disclosed in or implied by such forward-looking information. These
risks and uncertainties include, but are not limited to, the
following risk factors which are discussed in greater detail under
“Risk Factors” in the Company’s Annual Information Form for the
year ended August 31, 2017 available on SEDAR at www.sedar.com:
limited operating history, negative operating cash flow, food
industry, quality control and health concerns, regulatory
compliance, regulation of the industry, public safety issues,
product recalls, damage to Goodfood’s reputation, transportation
disruptions, product liability, ownership and protection of
intellectual property, evolving industry, reliance on a single
facility, unionization activities, reliance on management, factors
which may prevent realization of growth targets, competition,
availability and quality of raw materials, limited number of
products, environmental and employee health and safety regulations,
online security breaches and disruption, reliance on data centers,
open source license compliance, future capital requirements,
operating risk and insurance coverage, management of growth,
conflicts of interest, litigation, and catastrophic events.
Although the forward-looking information contained herein is based
upon what we believe are reasonable assumptions, readers are
cautioned against placing undue reliance on this information since
actual results may vary from the forward-looking information.
Certain assumptions were made in preparing the forward-looking
information concerning availability of capital resources, business
performance, market conditions, and customer demand.
Consequently, all of the forward-looking information contained
herein is qualified by the foregoing cautionary statements, and
there can be no guarantee that the results or developments that we
anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. In addition,
any statements as to financial results (including without
limitation, revenue, sales, margin and profitability in general or
with respect to any aspect of the Company`s business) is made as at
the time in question. There can be no assurance that past results
will be repeated and future results may vary materially. Unless
otherwise noted or the context otherwise indicates, any
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
Goodfood Market (TSX:FOOD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Goodfood Market (TSX:FOOD)
Historical Stock Chart
From Sep 2023 to Sep 2024