- The Very Good Food Company (VERY) has secured a new production facility in California as part of its expansion into the US market
- The lease covers approximately 25,000 square feet and is expected to have a maximum production volume of 550,000 pounds per week
- At a base rate of approximately C$32,482 per month, the lease provides for an initial term of five years and seven months
- The company also outlined a increased bonus package for its CEO, Mitchell Scott, and Chief Research and Development Officer, James Davison
- The Very Good Food Company (VERY) is currently up 0.65 per cent and is trading at $1.54 per share
The Very Good Food Company (VERY) has secured a new production facility in California as part of its expansion into the US market.
Signed on September 1, the lease pertains to approximately 25,000 square feet within a fully built-out facility. While it will require a small amount of renovation, it has established food production infrastructure, such as coolers and freezers, and is expected to commence operations on an expedited timeline.
Once in full swing, the facility will have an anticipated maximum production volume of 550,000 funds per week.
According to the terms of the lease, which has an initial term of five years and seven months at a rate of C$32,482 per month, The Very Good Food Company also has a right of first refusal to utilise a further 25,000 square feet in the same building.
Mitchell Scott, CEO of The Very Good Food Company, noted that the company is now in a strong position to progress its expansion into the US market, following a recently closed financing for more than $8.5 million
“The California facility is more than double the size of our future Vancouver facility, and will be capable of substantially larger production volume.
“With the strong demand we are currently experiencing for our products, finding a facility that could become operational quickly was key, and being located on the doorstep of a key logistics partner made this location an excellent fit,” he said.
Today’s announcement also outlined an increase in the compensation terms for Mitchell and the company’s Chief Research and Development Officer, James Davison.
As part of these new arrangements, the pair will each receive – either in cash or shares – an amount equal to 160,000 common shares based on the closing price on the date of election of the bonus option.
Mitchell and James will also receive a further 50,000 shares upon the achievement of certain performance milestones over the next three to nine months.
The Very Good Food Company (VERY) is currently up 0.65 per cent and is trading at $1.54 per share.