- The Very Good Food Company (VERY) has raised C$13.2 million to fund the launch of operations at its new production facility in Vancouver
- The company issued more than 3.77 million units at a price of $3.50 each, comprised of one common share and one-half of a share purchase warrant
- Each whole warrant will be exercisable at a price of $4.50 per share until June 4, 2022
- In addition to the bought deal offering, the company also raised $999,999 through a private placement, in which it issued 285,714 units at a price of $3.50 each
- The Very Good Food Company is currently down 3.25 per cent to $7.74 per share
The Very Good Food Company (VERY) has raised C$13.2 million to fund the launch of operations at its new production facility in Vancouver.
Under the terms of the bought deal offering, the plant-based food developer issued more than 3.77 million units at a price of $3.50 each. These units are comprised of one common share in The Very Good Food Company and one-half of a common share purchase warrant.
Each whole warrant will be exercisable at a price of $4.50 per share until June 4, 2022.
The offering was led by Canaccord Genuity, which elected to exercise its over-allotment option, and received a cash commission equal to 8 per cent of the total amount raised as well as compensation warrants equal to 8 per cent of the total amount issued.
Each of these compensation warrants will be exercisable at a price of $3.50 per share until June 4, 2022.
Canaccord also received a corporate finance fee comprised of 30,000 units.
“We are thrilled to see investor confidence continually increase as we expand the scope of our operations and outline a path for future growth,” said Mitchell Scott, CEO of The Very Good Food Company.
“Demand from wholesale and e-commerce customers continues to grow, and this financing will help us launch the Rupert Facility, our most significant near-term avenue for increasing production volume,” he added.
In addition to the bought deal offering, the company also completed a separate placement under which it issued 285,714 units at a price of $3.50 to raise a further $999,999.
The Very Good Food Company is currently down 3.25 per cent to $7.74 per share at 9:37am EST.