GoodFood - President and COO, Neil Cuggy
President and COO, Neil Cuggy
Source: GoodFood
  • Goodfood (FOOD) has raised C$40 million in a bought deal public offering to fund the build-out of its same-day delivery service
  • The financing was led by a syndicate of underwriters, co-led by Desjardins Capital Markets and Stifel GMP
  • The underwriters acquired a total of 5.79 million common shares at a price of $6.05 each, 1.65 million of which were purchased from senior insiders of the company
  • As such, and including the exercise of an over-allotment option, the company received a total of $28.8 million while the selling insiders received $11.5 million
  • Goodfood (FOOD) is currently up 6.98 per cent and is trading at $7.97 per share

Goodfood (FOOD) has raised C$40 million in a bought deal public offering to fund the build-out of its same-day delivery service.

The offering, which was originally announced in mid-July, was co-led by Desjardins Capital Markets and Stifel GMP, and included National Bank Financial, Scotia Capital, Raymond James, RBC Dominion Securities, Canaccord Genuity, Eight Capital and Acumen Capital Finance Partners.

These underwriters acquired a total of 5.79 million common shares at a price of $6.05 each, which included 4.13 million shares offered from Goodfood’s treasury and 1.65 million shares that were purchased from senior insiders of the company.

Among the sellers were Goodfood’s Chairman and CEO, Jonathan Ferrari, President and Chief Operating Officer, Neil Cuggy, Vice President of Merchandising, Raffi Krikorian, and Director, Hamnett Hill.

Pursuant to the divided sale, and including the exercise of an over-allotment option, Goodfood received a total of $28.8 million while the selling insiders received $11.5 million.

The company intends to use a significant portion of the proceeds to fund operational projects that will facilitate the build-out of its same-day delivery service through the acquisition of fulfilment technology and automation equipment.

Jonathan Ferrari, Chairman and CEO of Goodfood, noted in the original mid-July announcement that the capital raised will support the efficiency and breadth of the company’s operations.

“The proceeds of the Offering will help to propel Goodfood in its next phase of growth by adding same-day delivery capabilities through fulfilment technology and automation equipment.

“This initiative will not only set up our next phase of growth and penetration by providing added flexibility to our members, but also help further improve our margin profile as we aim to have among the lowest-cost fulfilment in the country,” he said.

Goodfood (FOOD) is currently up 6.98 per cent and is trading at $7.97 per share at 11:57am EDT.

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