BEVERLY HILLS, Calif., Feb. 29, 2016 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (OTCQB:BRFH), a manufacturer of frozen, ready-to-blend beverages announced that it has raised a private placement of equity in the amount of $5.9 million. The financing consists of two components; a new equity raise in the amount of $3,270,000, and the conversion into common equity of $2,633,498 of principal and interest from Convertible Promissory Notes which the Company had issued on January 29, 2016. The financing addresses working capital needs ahead of an expected significant acceleration in growth this year.
In accordance with this private placement, the Company is issuing 7,379,372 shares of common equity at a price of $0.80 per share. The transaction also includes warrant coverage of 50%, or 3,689,686 warrants, exercisable for a term of 5 years at $1.00 per share for cash.
Riccardo Delle Coste, the Company’s CEO stated, “This successful financing is a very significant milestone for our company. We’ve been actively positioning the company for accelerated growth over the past several months, including the recent manufacturing expansion that provides a pathway to over $100 million in sales. Moreover, the combination of these two financings sends a supportive message to our existing shareholders that we are poised to capitalize on years of grassroots efforts to bring Barfresh’s frozen beverage solution to the marketplace throughout North America.”
About Barfresh Food Group
Barfresh Food Group, Inc. (OTCQB:BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company's proprietary, U.S. patent-pending system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste. PepsiCo North America Beverages, a division of PepsiCo, Inc., is the exclusive sales representative in North America within the food service channel for Barfresh's full line of beverages. Barfresh has an exclusive distribution partnership with the leading food distributor in North America. 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 within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's commercial progress and 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”, among others. 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 and may not materialize. Investors are cautioned that any such statements are not guarantees of future performance. The contents of this release should be considered in conjunction with the warnings, risk factors and cautionary statements contained in the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10K and Quarterly Report on Form 10Q. Furthermore, the Company does not intend, and is not obligated, to update publicly any forward-looking statements, except as required by law.
Contact John Mills ICR 646-277-1254 John.Mills@icrinc.com Jeff Sonnek ICR 646-277-1263 Jeff.Sonnek@icrinc.com