Barfresh Announces Non-Recourse Non-Dilutive Litigation Financing

Rhea-AI Summary

Barfresh Food Group Inc. (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, has secured non-recourse non-dilutive litigation financing for its ongoing lawsuit. The company received multiple funding offers based on the merits of its legal case, which was filed on November 10, 2022. Barfresh has partnered with a well-known alternative asset investment firm and its litigation counsel, Boesch Law Group, to provide this financing.

Over the past two years, Barfresh has spent approximately $300,000 on this lawsuit, which has impacted its operating margins. The new financing arrangement eliminates the need for additional cash from the company to fund the pending lawsuit, potentially improving its financial position.

Positive

• Secured non-recourse non-dilutive litigation financing
• Received multiple funding offers based on case merits
• Eliminates need for additional company cash to fund lawsuit
• Potential improvement in operating margins

Negative

• Spent $300,000 over past two years on lawsuit
• Operating margins affected by legal expenses

Based on Merits of the Case, Company Received Multiple Offers to Fund Lawsuit Filed on November 10, 2022

LOS ANGELES, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, received multiple offers to fund its lawsuit on a non-recourse non-dilutive basis based on the merits of its legal case. The Company entered into an agreement with a well-known alternative asset investment firm and the Company’s litigation counsel, Boesch Law Group, to provide non-recourse non-dilutive litigation financing. Barfresh has spent approximately $300,000 over the past two years for this lawsuit which affected its operating margins. This new non-recourse non-dilutive financing removes the need for additional cash from the Company to fund this pending lawsuit.

About Barfresh Food Group

Barfresh Food Group Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary, patented system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. For more information, please visit www.barfresh.com.

Forward Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of future financial performance. These forward-looking statements are identified by the use of words such as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”, “expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast” and “project”, “continue,” “could,” “may,” “predict,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com

Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com

FAQ

What type of financing did Barfresh Food Group (BRFH) secure for its lawsuit?

Barfresh Food Group (BRFH) secured non-recourse non-dilutive litigation financing for its lawsuit filed on November 10, 2022.

How much has Barfresh (BRFH) spent on the lawsuit over the past two years?

Barfresh (BRFH) has spent approximately $300,000 over the past two years on the lawsuit.

How does the new financing affect Barfresh's (BRFH) cash requirements?

The new financing removes the need for additional cash from Barfresh (BRFH) to fund the pending lawsuit.

Who are the partners providing litigation financing to Barfresh (BRFH)?

Barfresh (BRFH) has partnered with a well-known alternative asset investment firm and its litigation counsel, Boesch Law Group, to provide the financing.