Hong-Kong listed H&H leads a $25.7M investment in ELSE Nutrition

Rhea-AI Summary

Else Nutrition Holdings (TSXV:BABY, OTCQX:BABYF) has announced a strategic capital increase of C$4 million via its subsidiary NewH2 Limited, boosting their total investment in Else to C$9.75 million. The funds will support the marketing and development of plant-based baby nutrition products in North America and globally. Additionally, Else closed a bought deal public offering that raised C$20.7 million. Following these transactions, NewH2 will hold approximately 11.6% of Else's outstanding shares. The company's products are now available on its e-store and will soon be on Amazon.

Positive

• Strategic capital increase of C$4 million from NewH2 Limited, totaling C$9.75 million.
• Proceeds will enhance marketing and development of plant-based baby nutrition products.
• Closed a bought deal public offering raising C$20.7 million.
• NewH2 Limited now owns approximately 11.6% of Else's outstanding shares.

Negative

• None.

The global baby & adult nutrition company increases its strategic capital stake in ELSE to $9.75M via its subsidiary NewH2 Limited

VANCOUVER, BC / ACCESSWIRE / October 13, 2020 / ELSE NUTRITION HOLDINGS INC. (TSXV:BABY)(OTCQX:BABYF)(FSE:0YL) ("Else" or the "Company"), a developer of plant-based alternatives to dairy-based baby nutrition, is announcing today that NewH2 Limited, a subsidiary of Health and Happiness (H&H) International Holdings Limited, a Hong Kong Stock Exchange listed company (1112.HK) has increased their strategic investment in Else by C$4.0 million pursuant to a non-brokered private placement announced on September 15^th.

The Company intends to use the proceeds of the offering to market its novel, plant-based baby and toddler nutrition products in North America alongside new product development operations. Furthermore, the investment provides the Company with the ability to accelerate and increase its production and supply capabilities, increase marketing activities and introduce its product(s) in new territories globally.

"We are very excited to continue to expand our relationship with H&H. They have been an immensely valuable partner and we look forward to working with their team in new market regions. We hear regularly from families across the globe who are seeking a non-dairy nutrition alternative for their children and we are fortunate to have a global partner supporting our endeavours for introduction of our products to store shelves in North America and beyond," said Ms. Hamutal Yitzhak, CEO and Co-Founder of Else.

Pursuant to the private placement the Company issued 2,224,111 (the "Units") at a price of C$2.25 per Unit. Each Unit consisting of one common share and 0.50 share purchase warrants, with each whole warrant (a "Warrant") entitling the holder to acquire one additional common share of the Company at an exercise price of C$3.25 per share for a period of thirty months from the closing date. With the completion this financing NewH2 owns 10,678,706 shares of the Company and 3,114,121 warrants, which will represent approximately 11.6% of the Company's issued and outstanding common shares. The units issued will be subject to a 12 month hold period from date of closing.

The Company also pleased to announce that it has closed its previously announced upsized bought deal public offering, lead by Canaccord Genuity, of units (the "Units") for ‎aggregate gross proceeds of CAD$20.7 million, including the exercise of the over-allotment option in full (the "Offering"). The Company issued ‎‎9,200,000 Units at a price of CAD$2.25 per Unit, each Unit consisting of one common share of the ‎Company (a "Share") and one-half of one common share purchase warrant, with each whole warrant (a "Warrant") ‎entitling the holder to purchase one Share at the price of CAD$3.25 per Share until October 6, 2022. ‎The Company has received approval from the TSX Venture Exchange ("TSXV") to list the Warrants issued pursuant to the Offering, and the Warrants are posted for trading on the TSXV under the ticker symbol "BABY.WT" effective October 8, 2020.

Else Nutrition's Plant-Based Complete Nutrition for Toddlers & Babies (12+ mo.) is now available for sale on Else's e-store at elsenutrition.com, and will soon be available on Amazon.com. Consumers can order single 22 oz cans and 4-packs.

About Else Nutrition Holdings Inc.

Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. Else Nutrition (formerly INDI) won the "2017 Best Health and Diet Solutions" award at the Global Food Innovation Summit in Milan. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed as TSX Venture Exchange under the trading symbol BABY and is quoted on the US OTC Markets QX board under the trading symbol BABYF and on the Frankfurt Exchange under the symbol 0YL. Else's Executives includes leaders hailing from leading infant nutrition companies. Many of Else advisory board members had past executive roles in companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition Societies, and some of them currently serve in different roles in leading medical centers and academic institutes such as Boston Children's Hospital, Pediatrics at Harvard Medical School, USA, Tel Aviv University, Schneider Children's Medical Center of Israel, Rambam Medical Center and Technion, Israel and University Hospital Brussels, Belgium.

For more information, visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.

For more information, contact:

Ms. Hamutal Yitzhak, CEO, Co-Founder & Director
ELSE Nutrition Holdings Inc.
E: hamutaly@elsenutrition.com
P: +972(0)3-6445095

Mr. Sokhie Puar, Director of Else Nutrition
Email: sokhiep@elsenutrition.com
Telephone: 604-603-7787

TSX Venture Exchange

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the Company's financial disclosure documents. Such forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID 19 and that the manufacturing, broker and supply logistic agreement with the Company do not terminate. Actual results may differ from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Else Nutrition Holdings

View source version on accesswire.com:
https://www.accesswire.com/610193/Hong-Kong-listed-HH-leads-a-257M-investment-in-ELSE-Nutrition

FAQ

What recent investment has Else Nutrition received?

Else Nutrition has recently secured a strategic investment increase from NewH2 Limited of C$4 million, totaling C$9.75 million.

How much did Else Nutrition raise in its public offering?

Else Nutrition raised a total of C$20.7 million in its public offering.

What will the proceeds from Else Nutrition's capital raise be used for?

The proceeds will be used to market plant-based baby nutrition products and for new product development in North America and globally.

What percentage of Else Nutrition does NewH2 Limited now own?

NewH2 Limited now owns approximately 11.6% of Else Nutrition's outstanding shares.

When will Else Nutrition's products be available on Amazon?

Else Nutrition's products will soon be available on Amazon.com.