Happy Belly Food Group Inc - HBFGF STOCK NEWS

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) announced that its Heal Wellness brand has secured its 47th franchise agreement for the Danforth neighborhood in Toronto. The agreement was signed by an existing multi-unit franchisee, who now holds four units in the Toronto area, with their third location on Avenue set to open soon.

Heal Wellness, a QSR specializing in fresh smoothie bowls, acai bowls, and smoothies, is expanding in the Danforth area, known for its health-conscious demographic and high foot traffic. The company currently has 421 retail locations contractually committed across all emerging brands in the Happy Belly portfolio, including stores in development, under construction, and operational.

Happy Belly is focusing on accelerating organic and inorganic growth in 2025, with their first M&A transaction of the year approaching completion. The company operates an asset-light franchising model and continues to evaluate prime real estate and franchise partnerships across Canada.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has secured a national food distribution agreement with Sysco (NYSE: SYY), a global leader in food distribution. The partnership enables all brands in Happy Belly's portfolio to benefit from Sysco's extensive distribution network and purchasing power.

The agreement provides Happy Belly's corporate and franchised locations with consistent access to high-quality products at competitive prices, leveraging economies of scale. Key benefits include reduced food costs, streamlined inventory management, reliable supply chain support, and enhanced operational efficiency through a single point of contact for ordering, billing, and customer service.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has announced the grand opening of its newest HEAL Wellness franchise location at the University of Alberta on January 11th, 2025. This marks the 6th store in Western Canada and brings the total system-wide count to 15 locations.

The company has a significant expansion plan with 421 contractually committed retail locations across all its emerging brands portfolio. Specifically for HEAL Wellness, there is a contractual commitment for 100 units across Canada and the US. Multiple locations are currently under construction in Alberta, British Columbia, and Ontario.

Happy Belly is executing an asset-light franchising model, focusing on securing quality franchisees and prime real estate locations. The company plans to accelerate its corporate store development as the brand's free cash flow grows, while continuing franchise program expansion.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has successfully closed its sixth consecutive above-market non-brokered private placement, raising CAN$500,000 through the issuance of 333,333 units at CAN$1.50 per unit. Each unit comprises one common share and one transferrable warrant, with warrants exercisable at CAN$1.50 for 12 months from closing.

The company recently acquired Smile Tiger Coffee Roasters, establishing its presence in the coffee, tea, bubble tea, energy drinks, and refreshers category. The financing will support both organic and inorganic growth initiatives in 2025, with a focus on pursuing cash-flow accretive M&A opportunities and achieving a cash flow positive state.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has signed a definitive agreement to acquire 100% of Smile Tiger Coffee Roasters, marking its entry into the coffee sector. The acquisition, valued at $250,000 (split between shares and cash), represents approximately 3.3x EBITDA based on Smile Tiger's projected 2024 sales exceeding $1,000,000.

Smile Tiger operates as a corporate-owned retail location in Kitchener, offering walk-in service, nationwide online sales of consumer-packaged goods (CPG), and white-label products. As a coffee roaster, it enables large-scale commerce opportunities, including supplying Happy Belly's existing brands across Canada.

The acquisition aligns with Happy Belly's consolidation strategy focusing on the '3 P's': People, Product, and Process. The company plans to leverage its leadership team's extensive coffee industry experience, including executives with backgrounds from Tim Hortons, Second Cup, and Balzac's Coffee, to drive immediate brand acceleration and integration.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has appointed John Grieve as Regional Vice President of Operations for Western Canada. The appointment comes after 10 consecutive record-breaking quarters of growth through organic expansion and strategic acquisitions. Grieve, formerly with Fat Burger, brings extensive experience from senior leadership roles at various restaurant groups including CraveIt Restaurant Group, Five Guys Burgers and Fries, and Edo Japan.

In his new role, Grieve will oversee Happy Belly's Western Canada operations, working with brand managers, franchisees, and corporate teams to align operational strategies with growth goals. He will focus on optimizing operational efficiency, enhancing guest experience, and supporting the expansion of franchised and corporate-owned locations, particularly for brands including Rosie's Burgers, Heal, and Via Cibo.

Happy Belly Food Group has secured a new location for Rosie's Burgers at 1542 Avenue Road in Toronto's Avenue & Lawrence neighborhood, set to open in Q2 2025. This marks the second planned corporate Rosie's location for 2025, alongside the Shops of Don Mills location.

Since its acquisition less than a year ago, Rosie's has expanded from two GTA locations to four operational sites across two provinces, with an additional 12 locations either corporate-owned, assigned to franchisees, or under construction. The company has 421 contractually committed retail locations across all Happy Belly Portfolio brands.

Rosie's Burgers is a boutique quick-serve restaurant specializing in smash burgers, poutine, onion rings, and milkshakes. The new location in North Toronto's affluent neighborhood is expected to benefit from the area's dense population and strong delivery potential.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has announced a strategic non-brokered private placement offering of up to 333,3333 units at CAN$1.50 per unit, aiming to raise CAN$500,000. Each unit includes one common share and one warrant, with warrants exercisable at CAN$1.50 for 12 months.

This marks the company's fourth consecutive above-market financing, reflecting strong market support. The proceeds will be used for organic growth and future acquisitions. Happy Belly currently has 421 contractually committed retail locations across its portfolio brands, with multiple restaurants under construction and planned openings throughout 2024-2025.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has secured a new location for its HEAL Wellness brand in Calgary's Kensington area. This marks the 7th secured location out of 10 committed units for their multi-unit franchisee in Alberta. The location is expected to open in Q2 2025.

HEAL Wellness, a quick-service restaurant specializing in smoothie bowls, acai bowls, and smoothies, is expanding in a densely populated area that aligns with the brand's demographics. The company currently has 421 contractually committed retail locations across all emerging brands in the Happy Belly portfolio, with multiple restaurant brands under simultaneous construction.