Blender Bites Completes Successful Financing Round
Blender Bites Limited (CSE: BITE, FWB: JL4) has successfully closed its previously announced private placement financing, marking a significant milestone for the company. This financing round resulted in the issuance of 1,875,000 units at a price of $0.64 each, generating total gross proceeds of $1,200,000. Each unit consists of one common share along with a quarter common share purchase warrant.
Financing Offering Details
Each warrant allows the holder to purchase an additional common share at a price of $0.80 within thirty-six months following the close of the offering. This strategic move aims to improve the company’s financial flexibility and support its ongoing operational requirements.
Accessibility for Investors
The units offered in this private placement were available to buyers in Canada, excluding Québec, under the listed issuer financing exemption as specified in National Instrument 45-106 – Prospectus Exemptions. Importantly, these units will not be subject to any statutory hold period according to applicable Canadian securities laws, which enhances accessibility for investors.
Use of Proceeds
The funds raised from this financing are designated for various operational expenses that are vital to the company's growth and sustainability. This includes financing raw material purchases, retailer listing fees, marketing costs, and general working capital needs. By strategically using these resources, Blender Bites aims to strengthen its market position and improve operational effectiveness.
Finder's Fees and Broker Warrants
In relation to this financing, Canaccord Genuity Corp. served as a finder, receiving a cash commission of $80,500 and 125,781 broker warrants, which aligns the interests of the brokerage with those of the company. Each broker warrant is also exercisable to acquire one common share at the same price of $0.80.
Corporate Governance and Related Party Transactions
Blender Bites has been open about related party transactions, noting that Amalfi Corporate Services Ltd., which is controlled by Geoff Balderson, the company’s CFO, will receive 37,500 administrative fee shares. This transaction is categorized as a “related party transaction” under Multilateral Instrument 61-101, and the company is relying on exemptions from certain requirements.
Overview of Blender Bites Operations
Founded in 2017, Blender Bites has swiftly established itself as a leader in the “easy smoothie” category across North America. The company is dedicated to using better-for-you ingredients and an eco-friendly approach, such as eliminating inner plastic packaging, which appeals to consumers seeking convenient yet healthy options. All products are certified organic, non-GMO, gluten-free, dairy-free, and soy-free, highlighting functional benefits like vitamins, collagen, and probiotics.
Future Plans and Market Strategy
Blender Bites plans to utilize its recent financing to improve product distribution channels, aiming to expand its presence in over 5,000 stores throughout the United States and Canada. Partnerships with major retailers such as Walmart, Albertsons, HEB, Whole Foods, and Publix further enhance the company’s market presence and product accessibility.
Statements from the Company and Contact Information
Chelsie Hodge, the Chief Executive Officer of Blender Bites, underscores the company’s innovative approach and growth potential. For more information about the company’s products and future developments, stakeholders can reach out via email at chelsie@blenderbites.com or call 236-521-0626, or contact the Investor Relations team at Blender Bites.
Frequently Asked Questions
What did Blender Bites achieve with this financing round?
Blender Bites successfully closed a private placement financing, raising $1.2 million to enhance operational capacity and product availability.
How many units were issued in the offering?
The company issued 1,875,000 units at a price of $0.64 per unit during this financing round.
What will the proceeds from the financing be used for?
The proceeds are allocated for operational expenses including raw material purchases, marketing, and general working capital.
Who facilitated the financing offering?
Canaccord Genuity Corp. acted as a finder and received a commission along with broker warrants as part of their facilitation.
Where can I find more information about Blender Bites products?
More information can be obtained by contacting the company's CEO or Investor Relations team through the provided email or telephone numbers.
