BranchOut Food Announces Closing of $1.4 Million Follow-On Public Offering

Rhea-AI Summary

BranchOut Food, a food technology company specializing in dehydrated fruit and vegetable products, has closed a public offering of 1,750,000 shares at $0.80 per share, raising $1.4 million in gross proceeds.

The company has also given underwriters a 45-day option to purchase an additional 262,500 shares at the same price, minus underwriting discounts.

The funds will be used for working capital and general corporate purposes, including operating expenses and capital expenditures.

Alexander Capital L.P. was the sole bookrunner, with legal counsel from Pachulski Stang Ziehl & Jones LLP for BranchOut and Sullivan & Worcester LLP for the underwriters.

The offering was made under a registration statement declared effective by the SEC on June 26, 2024.

Positive

• Raised $1.4 million in gross proceeds.
• Underwriters granted a 45-day option to purchase an additional 262,500 shares.
• Funds to be used for working capital and general corporate purposes, including operating expenses and capital expenditures.

Negative

• Shareholder dilution due to the issuance of an additional 1,750,000 shares.

Insights

Financial Analyst

The recent public offering by BranchOut Food Inc. is noteworthy and can be viewed from several angles. The company raised $1.4 million through the issuance of 1,750,000 shares at $0.80 per share. This capital influx is intended for working capital and general corporate purposes, which typically includes operating expenses and capital expenditures. From a financial standpoint, such an offering can help the company alleviate any short-term liquidity issues, thereby stabilizing its financial health.

However, issuing new shares also dilutes existing shareholders' equity, potentially impacting the stock price negatively in the short term. Investors should weigh this dilution against the potential benefits of improved liquidity and the company's ability to execute on its business strategy more effectively.

The underwriters have an option to purchase an additional 262,500 shares, which could bring further capital but also add to the dilution. Overall, this move signals that BranchOut Food Inc. is in a phase where it needs significant resources to fuel its growth or sustain operations.

Market Research Analyst

BranchOut Food Inc.'s public offering indicates a strategic move to secure additional funds for its operations and future growth. The decision to raise $1.4 million suggests a need for bolstering its current financial position, possibly to enhance production capabilities or expand its product line. This can be particularly important in the competitive and innovation-driven food technology sector.

For investors, it's important to understand the company’s market position and potential for growth. BranchOut operates in a niche (dehydrated fruit and vegetable-based products) and this capital could be used to strengthen its market presence or innovate new products. The food tech industry is growing, with increasing consumer interest in healthy, minimally processed foods, which could bode well for BranchOut’s future.

The company’s ability to utilize these funds effectively will be a key factor in its long-term success and stock performance. Investors should monitor how these resources are deployed and whether they lead to tangible improvements in market share or financial performance.

BEND, Ore., June 28, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), (“BranchOut” or the “Company”), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced the closing of its underwritten public offering of 1,750,000 shares of common stock at a public offering price of $0.80 per share. The gross proceeds from the offering, before underwriting discounts and commissions and estimated offering expenses payable by the Company, are approximately $1,400,000. In addition, the Company has granted the underwriters a 45-day option to purchase up to 262,500 additional shares of common stock at the public offering price, less the underwriting discounts.

The Company intends to use the net proceeds of the offering for working capital and general corporate purposes, including operating expenses and capital expenditure.

Alexander Capital L.P. acted as sole bookrunner for the offering. Pachulski Stang Ziehl & Jones, LLP served as counsel to BranchOut. Sullivan & Worcester LLP served as counsel to the underwriters.

The securities described above were offered by BranchOut pursuant to a registration statement on Form S-1, as amended (File No. 333-280428) that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 26, 2024. The offering was made only by means of a prospectus forming a part of the effective registration statement. A copy of the final prospectus related to the offering may be obtained from Alexander Capital L.P., 10 Drs James Parker Boulevard #202, Red Bank, New Jersey 07701, Attention: Equity Capital Markets, or by calling (212) 687-5650 or emailing info@alexandercapitallp.com or by logging on to the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About BranchOut Food Inc.

BranchOut is an international food-tech company delivering natural snacks and real superfood ingredients enabled by its licensed dehydration technology, which is protected by more than 17 patents. BranchOut 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 Statements

This 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 intended use of the net proceeds of the offering, the operations of the Company, 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 information contact:
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com

FAQ

What are the details of BranchOut Food's public offering?

BranchOut Food offered 1,750,000 shares at $0.80 each, raising $1.4 million in gross proceeds.

What will BranchOut Food use the proceeds from the offering for?

The proceeds will be used for working capital, general corporate purposes, operating expenses, and capital expenditures.

What is the potential impact on BOF shareholders from this offering?

The offering could lead to shareholder dilution as 1,750,000 new shares were issued.

What is the ticker symbol for BranchOut Food?

The ticker symbol for BranchOut Food is BOF.

Who acted as the sole bookrunner for BranchOut Food's offering?

Alexander Capital L.P. acted as the sole bookrunner for the offering.

When was the registration statement for BranchOut Food's offering declared effective?

The registration statement was declared effective by the SEC on June 26, 2024.