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BranchOut Food Inc. (NASDAQ:BOF), a company specializing in food and kindred products with a current market capitalization of $19 million, has amended its At-The-Market (ATM) equity offering, increasing the potential sale of shares from $3 million to $5 million. This amendment was made on Monday, February 18, 2025, and filed with the Securities and Exchange Commission (SEC). According to InvestingPro data, the company’s stock currently trades at $2.42, and analysis suggests it may be overvalued at current levels.
The original ATM agreement, established on October 23, 2024, with Alexander Capital, L.P., allowed BranchOut Food Inc. to issue and sell common stock through Alexander Capital as a sales agent. Following the amendment, the company also updated the prospectus supplement related to the offering, which details the increased number of shares that may now be sold under the ATM Offering. InvestingPro analysis reveals the company is quickly burning through cash, with negative EBITDA of $3.97 million in the last twelve months.
The First Amendment to the ATM Agreement enables BranchOut Food Inc. to potentially raise additional capital. This could be used for various corporate purposes, although the specific intentions for the proceeds were not disclosed in the SEC filing. The legal opinion regarding the validity of the newly available shares was provided by Pachulski Stang Ziehl & Jones LLP.
The ATM Offering allows for the sale of shares at market prices from time to time, giving the company flexibility in managing its capital needs. The increase in the offering size to $5 million provides BranchOut Food Inc. with a larger pool of funds to tap into, should the need arise.
The SEC filing and its exhibits, including the First Amendment and the legal opinion, serve as the source for this information. The filing emphasizes that it does not constitute an offer to sell or a solicitation of an offer to buy the shares. It also notes that the sale of shares will not be conducted in any state where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that state.
Investors and the market will watch how BranchOut Food Inc. utilizes this expanded ATM facility to support its business operations and growth strategies. For deeper insights into BOF’s financial health and growth prospects, including 8 additional ProTips and comprehensive financial metrics, visit InvestingPro.
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