BranchOut Food Strengthens Financial Position with Successful Sale of Senior Secured Promissory Notes and Warrants
17 April 2024 - 2:00PM
BranchOut Food Inc. (NASDAQ: BOF), a food technology company and
maker of dehydrated fruit and vegetable-based products, today
announced that it has completed the sale of $225,000 of Senior
Secured Promissory Notes ("Notes") and Warrants to purchase an
aggregate of 56,250 shares of the Company’s common stock. Each
Warrant is exercisable for a ten-year period at an exercise price
of $2.00 per share. The Company has board approval to borrow up to
$2,000,000 of Notes. The current balance of Notes after this close
is $625,000.
The proceeds from this transaction are earmarked
for working capital to fulfill orders throughout 2024, as well as
capital expenditures on new dehydration equipment, which are
necessary to meet the increasing customer demand projected for 2025
and beyond. The Company believes that the completion of this
financing will provide it with the necessary resources to execute
on its growth strategy, substantial momentum in new orders, and
drive long-term shareholder value.
The sale was made to a group of seven investors
pursuant to a First Amendment to Subscription Agreement dated April
15-16, 2024. The transaction was conducted in accordance with
Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule
506(b) promulgated thereunder.
The Notes mature on the earlier of December 31,
2024, or the occurrence of a Qualified Subsequent Financing or
Change of Control, and bear interest at a 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 on January 10, 2024, in favor of
holders of the Notes.
In connection with the transaction, the Company
also increased the aggregate principal amount of Notes available to
be sold from time to time under the Subscription Agreement from
$400,000 to $2,000,000, and increased the number of shares of
common stock of the Company available to be issued under Warrants
sold from time to time under the Subscription Agreement from
100,000 to 600,000. The current balance of Notes upon this close is
$625,000.
About BranchOut Food
Inc.BranchOut Food is an international food-tech company
delivering truly great natural snacks and real superfood
ingredients enabled by its licensed dehydration technology. The
company’s GentleDry Technology is the next generation in
dehydration technology, preserving up to 95% of the original
nutrition of fresh fruits and vegetables. BranchOut’s technology is
protected by more than 17 patents. BranchOut Food is proud to be a
leading provider of high-quality dehydrated fruit and
vegetable-based products and its commitment to quality and
innovation sets it apart as a trusted brand and private label
supplier. For more information about BranchOut Food Inc. and its
products, please visit www.branchoutfood.com and follow
us on LinkedIn and Twitter.
Forward-Looking StatementsThis
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
forecasts of future events. Forward-looking statements may be
identified using words such as "forecast," "intend," "seek,"
"target," "anticipate," "believe," "expect," "estimate", "plan,"
"outlook," and "project" and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters. Forward-looking statements with respect to the
operations of BranchOut Food, Inc., (the Company) strategies,
prospects and other aspects of the business of the Company are
based on current expectations that are subject to known and unknown
risks and uncertainties, which could cause actual results or
outcomes to differ materially from expectations expressed or
implied by such forward-looking statements. You are cautioned not
to place undue reliance upon any forward-looking statements, which
speak only as of the date made. Although it may voluntarily do so
from time to time, the Company undertakes no commitment to update
or revise the forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
applicable securities laws.
For more informationJeff RamsonPCG
Advisory
646-863-6893
jramson@pcgadvisory.com
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