The Very Good Meals Firm on verge of securing money

The Very Good Meals Firm on verge of securing money

The Very Good Meals Firm, the financially embattled alternative-protein enterprise, is on the verge of securing funding.

After sounding yet one more warning in November over the necessity to elevate money to make sure the long run “viability” of the Canadian entity, the Very Good Butchers model proprietor has entered a non-binding settlement with private-equity agency Reef Capital for CAD2m (US$1.4m).

Vancouver-based The Very Good Meals Firm stated the “non-brokered non-public placement of an unsecured convertible notice” may have a maturity worth of CAD2.1m. The securities, which carry an annual rate of interest of 15%, will come due 18 months after the completion of the issuance.

The Very Good Meals Firm will use the proceeds for working capital, assuming the debt transaction closes on the goal date of 30 December.

In November, the corporate stated it had been managing its short-term liquidity by means of restricted entry to a revolving line of credit score underneath a senior secured credit score facility with Waygar Capital. The Very Good Meals Firm famous then it may depend on that credit score till the tip of December, by which era it couldn’t “make sure the monetary viability of its enterprise”.

Reef Capital may have the choice to transform the notes into shares of The Very Good Meals Firm at a value of ten Canadian cents every.

It has been a chequered 12 months for The Very Good Meals Firm following the departure of its founders amid a cash-burn warning, the appointment of a brand new govt administration workforce and the disposal of property to maintain the enterprise afloat. A strategic evaluate was launched in September, a course of that’s nonetheless ongoing and will entail an acquisition or merger, the corporate has stated.

The Very Good Meals Firm’s share costs have been on a downhill spiral over the previous 12 months on each the Nasdaq and Canada’s Enterprise Change, with the latter but to approve the issuance of the convertible notes.

In November, the enterprise, which additionally owns the Very Good Cheese Co. various model, stated it deliberate to enchantment a delisting discover from the US Nasdaq trade after once more violating itemizing guidelines pertaining to the share value.

Reef Capital, in the meantime, may have two nominees appointed to The Very Good Meals Firm’s board. In flip, one of many firm’s administrators will resign from the board and Reef may have rights for nominations at future shareholder conferences.

See Simply Meals’s evaluation: Spectre raised of plant-based meat fragility as Very Good Meals goes available on the market

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