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Goodfood (TSX:FOOD) completes $12.7M private placement of debentures

Consumer, Market News
TSX:FOOD
06 February 2023 09:00 (EDT)

Goodfood Market Corp. (FOOD) has completed a $12.675 million private placement led by Investissement Québec.

The company issued unsecured subordinated debentures maturing on February 6, 2028, at a price of $1,000 per debenture. The total investment consists of $10 million from Investissement Québec and $2.675 million from management, Board members and existing shareholders.

“We are pleased to partner with Investissement Québec to bolster Goodfood’s balance sheet and achieve our path to profitability and positive cash flows. With the capital raised, we will continue to execute the final steps of our profitable growth plan and deliver more delicious Goodfood products to Canadians,” said Jonathan Ferrari, Chief Executive Officer of Goodfood.

“As our target cost structure is now nearly in place, we are transitioning our focus to growing the Goodfood brand in Quebec and across the country, and we are thrilled to count on a partner such as Investissement Québec in our next growth phase. We are also proud to highlight the commitment of our management team, board and existing shareholders who are participating in this financing to the tune of $2.675 million,” concluded Mr. Ferrari.

“Investissement Québec is proud to support innovative Québec companies like Goodfood in order to propel their growth,” says Bicha Ngo, Senior Executive Vice-President, Private Equity, Investissement Québec.

The debentures will be convertible at the holder’s option into common shares of Goodfood at a conversion price of $0.75 per share. The debentures will bear interest at a rate of 12.5 per cent per annum.

Goodfood Market Corp. is a leading digitally native meal solutions brand in Canada.

Goodfood Market Corp. (FOOD) opened trading at C$0.53 per share.


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