GoodFood - President and COO, Neil Cuggy
President and COO, Neil Cuggy
Source: GoodFood
  • Online grocery company Goodfood (FOOD) is pursuing its growth plans with a new bank financing totalling C$46 million
  • The financing includes a $27.5 million revolving facility, a $12.5 million term loan facility and $6 million in additional short-term financing
  • With flexible conditions and variable interest rates, the facilities will come to maturity in November 2023
  • It’s expected that the funds will be used to support automation capital expenditures, refinancing of existing credit facilities and general corporate purposes
  • Goodfood is currently down 1.29 per cent to $8.44 per share

Online grocery company Goodfood (FOOD) is pursuing its growth plans with a new bank financing totalling C$46 million.

Led by Desjardins Capital Markets and with participation from Investissement Québec, the financing includes a $27.5 million revolving facility, a $12.5 million term loan facility and $6 million in additional short-term financing.

“Combined with our cash balance, we now have access to more than $125 million of liquidity, providing great flexibility to propel the business in its next phase of growth,” said Philippe Adam, Chief Financial Officer of Goodfood.

“This non-dilutive financing with an attractive cost of capital also provides us with the means to continue to strategically manage our capital allocation and working capital,” he added.

Goodfood said it plans to use the funds to execute its growth strategy, primarily through expansion and automation capital expenditures. A portion will also go towards the refinancing of existing credit facilities and general corporate purposes.

“We are excited by the opportunity ahead of us and the favorable trends stemming from the acceleration of online grocery and meal solutions adoption by Canadians,” said Jonathan Ferrari, CEO of Goodfood.

“With this financing transaction and our consistently strong execution, we are ideally positioned to cement our leadership in this high-growth market,” he concluded.

The financing follow’s Goodfood’s second straight quarter of positive income, which saw an 85 per cent increase in revenue for the three months ending August 31, 2020, compared to the same period last year.

The company said this was largely attributable to growth in its active subscriber base, increased average order values driven by an expanded product offering, and stronger order rates.

Goodfood is currently down 1.29 per cent to $8.44 per share at 10:53am EST.

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