GoodFood - President and COO, Neil Cuggy
President and COO, Neil Cuggy
Source: GoodFood
  • Online grocery company Goodfood (FOOD) is set to raise C$35 million to facilitate the build-out of its same-day delivery capabilities
  • Under an agreement with a syndicate of underwriters, co-led by Desjardins Capital Markets and Stifel GMP, the company intends to issue a total of 4.13 million shares at a price of $6.05 each
  • A further 1.65 million common shares will be acquired by the underwriters from certain senior insiders of the company
  • The proceeds will be used to establish fulfilment technology and automation equipment to facilitate same-day delivery capabilities
  • Goodfood (FOOD) is down 3.1 per cent and is trading at $6.25 per share

Online grocery company Goodfood (FOOD) is set to raise C$35 million to facilitate the build-out of its same-day delivery capabilities.

Under an agreement with a syndicate of underwriters, co-led by Desjardins Capital Markets and Stifel GMP, the company intends to issue a total of 4.13 millioncommon shares at a price of $6.05 each.

In addition, an aggregate of 1.65 million common shares will be purchased by the underwriters from certain senior insiders of the company.

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

While the offering remains subject to approval from the Toronto Stock Exchange, as well as other corporate and regulatory bodies, it’s expected to close on around August 5, 2020.

Once finalised, Goodfood intends to use the proceeds fund capital and operational projects for the build-out of its same-day delivery capabilities. To facilitate this, the company plans to set in place the necessary fulfilment technologies and automation equipment.

Jonathan Ferrari, Chairman and CEO of Goodfood, noted 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 down 3.1 per cent and is trading at C$6.25 per share at 1:59pm EDT.

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