Forbidden Foods Limited (ASX: $FFF) has received firm commitments to raise $0.6m through a Share Placement priced at $0.018 per share, representing a 27.4% premium to the 15-day Volume Weighted Average Price (VWAP) of the company's shares to 9 April 2024. The funds raised will provide balance sheet strength to accelerate sales with key retailers, increase ecommerce revenue, and drive brand awareness, alongside the strategic build-up of inventory to meet future demand.
We are pleased to announce this strategic capital raise, which comes at an important juncture in our stated growth strategy to accelerate sales for our flagship Blue Dinosaur product range in core target markets, alongside an improved manufacturing capability to drive margin growth. With the funds raised, Forbidden Foods will have added financial flexibility to execute on targeted marketing and distribution campaigns across key retail channels, where the management team have identified specific opportunities to build off the group's existing sales footprint. Strategically, this gives the Company an opportunity to establish real momentum when combined with our improved manufacturing capability through the partnership with Edenvale Foods. We look forward to providing further updates as Forbidden Foods continues to capitalize on the improved market position it has established since the new management team was appointed in mid-2023.
Forbidden Foods Limited (ASX: $FFF) has successfully secured a strategic share placement, raising $0.6m at a 27.4% premium to accelerate sales, increase ecommerce revenue, and drive brand awareness. The capital raise positions the company to significantly expand its sales profile, complement the forecast cost savings, and margin expansion from its recent contract manufacturing partnership with Edenvale Foods. The funds will also be allocated to a strategic build-up of inventory levels to ensure fulfillment for future purchase orders. The company's focus on targeted marketing and brand awareness strategies, combined with streamlined manufacturing processes, is expected to drive sales and margin growth. The completion of the Placement is expected to occur on 18 April 2024, with trading of the new shares expected to commence on the following business day. Shareholder approval at an Extraordinary General Meeting ('EGM') will be sought for the issue of Related Party Shares and any Attached Options, which will be held in May 2024.