branchout food inc. enters agreement with kaufman kapital

Published 02/06/2025, 11:26
branchout food inc. enters agreement with kaufman kapital

BranchOut Food Inc. (NASDAQ:BOF) has entered into a definitive agreement with Kaufman Kapital LLC, as disclosed in a recent SEC filing. The agreement involves Kaufman exercising a warrant to purchase 1,000,000 shares of BranchOut’s common stock at $1.00 per share, resulting in a cash payment of $1,000,000 to BranchOut. This exercise must be completed by June 16, 2025. The company, currently valued at approximately $17 million, has shown strong revenue growth of 96% over the last twelve months, reaching $8.24 million in sales.

Additionally, the agreement includes several amendments to existing financial arrangements between the two parties. The expiration date for a separate warrant to purchase 500,000 shares at $1.50 per share has been extended to December 31, 2026. Furthermore, the maturity date of a 12% Senior Secured Convertible Promissory Note, originally valued at up to $3,400,000, has been extended from December 31, 2025, to December 31, 2026. A Senior Secured Promissory Note with a principal amount of $1,200,000 now has a new maturity date of December 31, 2025. InvestingPro analysis reveals concerning liquidity metrics, with short-term obligations exceeding liquid assets and a current ratio of 0.68.

The agreement stipulates that BranchOut will not prepay any amounts under the Convertible Note while any amount remains outstanding under the Secured Note or other non-convertible notes, excluding those for equipment financing. Additionally, BranchOut is restricted from prepaying more than $2,400,000 of the principal under the Convertible Note before September 30, 2026.

BranchOut Food Inc., based in Bend, Oregon, is classified under the food and kindred products industry. The company is an emerging growth entity, and its common stock is listed on the Nasdaq Capital Market under the ticker symbol BOF.

This information is based on a press release statement filed with the SEC.

In other recent news, BranchOut Food Inc. has entered into a Definitive Agreement with MicroDried to incorporate BranchOut’s GentleDry technology into MicroDried’s operations. This collaboration is expected to enhance large-scale production at BranchOut’s new facility in Peru, potentially generating $5-6 million in annual ingredient sales. The GentleDry technology is designed to offer superior flavor, color, and nutrition in dried ingredients, providing food manufacturers with a broader range of high-quality options. This partnership leverages MicroDried’s established market presence and decade-long expertise, expanding the reach of GentleDry technology to a wider customer base. The freeze-dried ingredient market, valued at $36 billion globally and growing at a 7.6% annual rate, presents a significant opportunity for this collaboration. This agreement aligns with BranchOut’s multi-channel sales strategy, which includes branded retail and private label divisions, as well as an upcoming direct-to-consumer e-commerce platform. Initial orders are already in production, indicating a promising start for the partnership in the global ingredient market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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