This transaction supports the continued execution of our product roadmap and capital expenditures on new equipment.
BEND, Ore., April 17, 2024 (Globe Newswire) — Branchout Foods, Inc. (NASDAQ: BOF), a food technology company and manufacturer of dehydrated fruit and vegetable-based products, today completed a $225,000 sale. announced that it did. We will issue a senior secured promissory note (the “Note”) and stock acquisition rights to purchase a total of 56,250 shares of our common stock. Each warrant is exercisable for a period of 10 years with an exercise price of $2.00 per share. The Company has received board approval to borrow up to $2 million in debt. The current balance on the Notes after this transaction is $625,000.
Proceeds from this transaction will be used to provide working capital to fulfill orders through 2024 and to fund new dehydration equipment needed to meet expected increased customer demand in 2025 and beyond. The Company believes that the completion of this financing will provide the necessary resources to execute on its growth strategy, significantly drive new orders, and enhance long-term shareholder value.
The sale was made pursuant to the First Amendment to the Subscription Agreement dated April 15-16, 2024 to a group of seven investors. The transaction was conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. , and Rule 506(b) promulgated thereunder.
The Notes will mature on the earlier of December 31, 2024 or upon the occurrence of any qualifying subsequent financing or change of control, and will bear interest at the rate of 15% per annum. The Notes are secured by liens on substantially all of the Company's assets pursuant to the terms of a security agreement entered into by the Company in favor of the holders of the Notes on January 10, 2024.
In connection with this transaction, the Company also increased the aggregate principal amount of the Notes that may be sold from time to time under the Underwriting Agreement from $400,000 to $2,000,000 and also increased the number of shares of the Company's common stock that may be issued under the Underwriting Agreement. Did. From 100,000 to 600,000 Warrants may be sold from time to time under the Subscription Agreement. The current balance of the Notes at the close of this transaction is $625,000.
About Branchout Food Co., Ltd.
BranchOut Food is an international food technology company offering truly amazing natural snacks and authentic superfood ingredients made possible through certified dehydration technology. The company's GentleDry technology is the next generation of dehydration technology, preserving up to 95% of the original nutrients in fresh fruits and vegetables. BranchOut's technology is protected by over 17 patents. Brunchout Foods is proud to be a leading provider of high-quality dried fruit and vegetable-based products, and its commitment to quality and innovation has distinguished it as a trusted brand and private label supplier. I am. For more information about BranchOut Food Inc. and its products, please visit www.branchoutfood.com and follow us on LinkedIn and Twitter.
Forward-looking statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or predictions of future events. Forward-looking statements use words such as “anticipates,” “intends,” “seeks,” “goals,” “anticipates,” “believes,” “anticipates,” “estimates,” “plans,” “outlooks” and similar words. may be identified. “” and “project” and other similar expressions that predict or suggest future events or trends or that are not statements of historical matter. Forward-looking statements regarding BranchOut Food, Inc.'s (the Company) strategies, prospects and other aspects of our business are based on current expectations that are subject to known and unknown risks and uncertainties. actual results or achievements may differ materially from the expectations expressed or implied by such forward-looking statements; You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We may voluntarily update or revise any forward-looking statements from time to time, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. We have no obligation to update or correct the.
For more information
Jeff Lamson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
