Food Revolution Receives Further Funding And Signs A Distribution Deal

food

The Food Revolution Group Ltd (ASX: FOD) is into the business of the processing of fruit and vegetable. The company manufactures a variety of juices, fibres, infused fruits. The company’s products are sold as ingredients to Australian and international functional food, beverage, and nutraceutical markets.

The Company, today on 8 March 2019, has stated that the Chairman, Dr Norman Li has agreed to advance $1.89 million to the company by way of bridge funding as part of the remaining $16.74 million of his $20.25 million subscription agreement commitment whilst the Company arranges the Notice of Meeting (NoM) to receive shareholder approval for the issue of the shares under that commitment. 

The funding will help the company in upgrading its Mill Park facility, conduct R&D on its proposed export products and provide flexibility to increase production after the first run of Canola oil under the Sinopec agreement.

The $1.89 million bridge funding is being provided to the company on an interest-free basis, has no security and will be repayable by the firm from the proceeds of the issue of the next tranche of 100 million ordinary shares to raise $5.4 million upon and subject to receiving shareholder approval.

As previously announced to the market, Careline Australia Pty Ltd’s and its nominees’ (Careline) $20.25 million commitment to invest in ordinary shares is a firm commitment (not options) and is personally guaranteed by the Chairman, Dr. Norman Li.

As part of this development, the company is also pleased to announce that it has today entered into a distribution agreement with Careline setting out the terms of Careline’s process for ordering and distributing the Company’s products in China. This distribution deed is on similar conditions to other supply agreements the company has entered into with its customers in terms of ordering, payment, and supply of products and as it is a related party contract shareholder will be asked to approve the agreement at the forthcoming general meeting. The company expects to issue its NoM in April and hold the shareholder meeting in May to vote on the various transactions referred to above and in the Company’s previous announcements.

Since Careline and Dr. Li’s investment in FOD, the company has signed a distribution deal with Shanghai-based JJ Global Fine Foods and commenced shipping orders of its Fruit Farm Orange Juice and Apple Juice to China. The Company expects to continue growth in its sales in Australia through newly-signed domestic branded product distribution deals, with newly-won business with major supermarkets Woolworths, Coles, Aldi, Metcash and the relaunch of its Juice Lab products.

On the price-performance front, the stock has posted the YTD return of -36%. The company also posted returns of -41.82% & -33.79% over the past three & one-month period, respectively. At the time of writing (08 March 2019, AEST 04:00 PM), the stock of the company is trading at a price of $0.098, up 2.083% during the day’s trade with a market capitalization of ~$48.28 Mn. The stock opened the day at $0.099, reached the day’s high of $0.105 and touched the day’s low of $0.098, with an average daily volume of ~5,168,797. It has a 52-week high price of $0.212 and a 52 weeks low price of $0.038, with an average volume of 2,569,247 approximately.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.