Nabati Foods announces up to $4m private placement

Nabati Foods – an Eat Beyond Global Holdings portfolio company – has entered an agreement to be acquired by a private British Columbia company (BCCO), as part of a proposed offering for up to $4 million.

As part of the acquisition, Mackie Research Capital Corp. has agreed to offer 8 million BCCO special warrants on a private placement basis for a total of up to $4 million.

The private placement offering has been made prior to applying for a listing on the Canadian Securities Exchange.

Based in Alberta, Nabati is a food technology company that manufactures and sales plant-based products throughout North America. Its portfolio – which includes dairy-free cheesecakes, plant-based meats and cheese alternatives – is gluten-free, soy-free, vegan, non-GMO and certified kosher.

The proceeds of the offering will be used for BCCO’s proposed transaction, as well as to fund Nabati’s business development that includes plant expansion, new equipment, boosted production capacity and new product lines.

“Demand for Nabati products has been growing rapidly, and the team is working around the clock to get a second facility up and running to increase production capacity,” said Patrick Morris, CEO of Eat Beyond.

Founded in 2014, Nabati’s products are now available in over 300 stores across Canada and in over 120 stores across the US. The company plans to enter the European market in 2022.

“Nabati’s 2020 revenue increased by over 85% over 2019’s numbers, and we are optimistic that demand will continue to grow, particularly as the company releases more product lines,” Morris added.

Ahmad Yehya, CEO of Nabati, added: “We are very excited to take the company to the next level with this round of financing. The offering will give us the fuel we need to continue to build our vision, and get healthy, plant-based products that taste great into the hands of more and more people.”