Else Nutrition (TSX: BABY) had a cryptic announcement this morning when the company revealed it would be rolling out its products across Canada in “one of the world’s leading retailers of natural and organic foods.”
The announcement notably contained an image of the company’s products sitting in front of a Whole Foods Market sign, although the brand was not specifically mentioned in the release. Notably, Whole Foods was acquired by Amazon (NASDAQ: AMZN) in 2017 for $13.7 billion.
The product launch is said to include the firms entire product range of toddler nutritional supplements, kids drinks, and baby super cereals. Following the Canadian launch, a US market launch with the same retailer is planned to occur. Whole Foods has five locations in Vancouver, and five in Greater Toronto Area, with 14 total locations across the country.
Else, again being cryptic, described the retailed as being known for natural and non-GMO products, which aligns with Else’s focus on plant-based nutrition.
“This partnership reflects the growing demand and recognition of our brand attributes and differentiation within the marketplace. We are truly enthusiastic about our growth prospects with this wonderful retailer both for Canada and soon too, in the United States. Else Nutrition can already be found on shelves in eastern Canada, and will imminently be available in western Canada. Moms and dads will be thrilled with the product!” commented CEO Hamutal Yitzhak.
The product placement follows the company entering a letter of intent with Danone for a multi-staged collaboration. That collaboration will see a licensing agreement entered, where Else’s products will be included in Danone’s specialized nutrition portfolio, and manufactured, marketed, and commercialized by the dairy giant. Financial details of that transaction however were not disclosed.
The company this morning also announced it would be conducting an overnight marketed offering of 13.0 million units at $0.385 per share, to raise gross proceeds of $5.0 million. Proceeds from the financing are slated to be used for R&D, sales and marketing, to purchase inventory, and for general corporate purposes.
Else Nutrition last traded at $0.385 on the TSX.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
