Financing Consists of Equity Raise and Exercise of Existing Warrants
Will Provide Expansion Capital for 2019
BEVERLY HILLS, Calif., Feb. 27, 2019 (GLOBE NEWSWIRE) -- Barfresh Food Group, Inc. (BRFH), a manufacturer of frozen, ready-to-blend beverages, today announced that it has raised over $4.3 million of capital through a private placement of equity and cash exercise of existing warrants. The two components of the capital raise consist of an issuance of 4 million shares of common stock at .60 cents per share, with no warrant coverage, and the exercise of 3.1 million existing warrants at an average price of .60 cents per share, for total gross proceeds of approximately $4.3 million.
Riccardo Delle Coste, the Company’s CEO stated, “This financing provides the Company with capital to move our pipeline of national accounts from the testing phase into eventual roll-out. In addition, we will use the capital to accelerate our penetration in the very lucrative school and military channels, where in just over twelve months we have expanded to over 300 school locations and over 100 military base locations.”
Mr. Delle Coste continued, “In addition to the strong growth opportunities we have in our school and military channels, we are excited about the expected rollout of over 2,500 locations for a national restaurant chain which we previously announced a few months ago. We have an established organization with ample manufacturing capacity, logistics and distribution network to successfully service this new national restaurant client and many others.”
About Barfresh Food Group
Barfresh Food Group, Inc. (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, patented 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. 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.