VANCOUVER, British Columbia, July 10, 2019 (GLOBE NEWSWIRE) -- ELSE NUTRITION HOLDINGS INC. (TSX-V: BABY) (“BABY” or the “Company”), is pleased to provide the following letter to shareholders.
I would like to take this opportunity to thank our shareholders for their confidence and continued support in our mission to commercialize a proprietary, best in class, plant-based baby formula. I am excited to mark the beginning of this new chapter. Together, we are creating and intend on bringing to market a tasty, healthy, non-dairy, 100% plant-based baby formula in addition to plant-based food products to our valued consumers. The opportunity before us includes products for not only infants and toddlers, but children and adults. Currently, we have developed the only real alternative to the blockbuster dairy-based nutrition market, all while consciously striving to make a meaningful impact on environmental sustainability.
Nearly 18 months ago, we charted the pathway for a go public transaction via a partnership between financiers in Canada and Israel. In May of this year, we launched a fundraising effort and saw such significant demand that we were able to oversubscribe our financing. On June 12, 2019, we closed this fundraising by way of a non-brokered private placement for gross proceeds of $7,500,000 CAD. Else’s shares commenced trading on the TSX Venture Exchange under the symbol “BABY” on June 18, 2019 and closed up over 170% from the opening price.
The founders of ELSE are veterans of the infant nutrition industry, having held executive level positions with the likes of: Abbott Laboratories, Promedico and Materna (a leading baby formula producer, acquired by Nestlé). However, the Else story was born out of real necessity; the personal crisis of a caring grandfather in need of helping his baby granddaughter, who suffered from severe baby formula allergies. This spawned a need for something novel and an idea took flight: to provide a real alternative to dairy and soy-based formulas, providing a solution for those suffering from lactose intolerance (the inability to digest lactose, the main carbohydrate in milk), allergies and other food sensitivities. It also provides an alternative to families that prefer not to consume dairy products. The inception of the idea was, and remains, deeply personal for us. This sentiment continues to guide us as we move the company forward.
What We Have Done
After 5 years of intensive research and development (R&D) and patent applications and registrations across many countries and wide industry recognition, we have developed a 100% plant-based, non-dairy, non-soy, non-GMO, and gluten-free infant formula. Our proprietary all-natural process transforms two plants, almonds, and buckwheat, into a high-quality baby formula that mimics the nutritional composition of breast milk. We use the whole plant (no extracts or derivatives) for our products. Additionally, the products do not contain purified oil blends nor are they processed with chemical nor do we fortify our formula with synthetic amino acids. In short, we created a clean, delicious and healthy plant-based alternative for baby formula products – the first such product in more than 100 years.
Where We Are Going
For the past several months, we have been testing and gearing up for commercial scale production and the North American launch of our first products: powder and liquid baby formula for toddlers (12-36 months old). We plan to launch the products in the United States in Q2-2020 with a focus towards parents with babies that suffer from allergies and vegan families that do not consume dairy products. We will begin with online sales in the U.S. market as well as specialty/regional retailers. We intend on initially targeting our marketing efforts to early adopters, such as parents and caretakers of toddlers suffering from dairy/soy allergies, vegan families, and parents of toddlers fed with specialty formulas. Marketing efforts will initially focus on driving targeted brand awareness among these groups, as well as advocacy from key opinion leaders and partners. We hope to cultivate a passionate community of Else advocates, who can help spread their love of the brand.
We are in the process of growing our team and the depth of our bench, with the addition of tenured experts in: marketing, retail-tech, and clinical testing – all critical for our success. Recently, we hired an experienced Director of Clinical Development, Regulatory and Scientific Affairs, who will be instrumental in helping us secure necessary approvals for launches in new jurisdictions. She comes to us with a wealth of experience in the industry from her prior work for international baby food companies. We also hired a Director of Marketing, well-versed in digital marketing and with extensive global consumer packaged goods and food and beverage experience.
I would like to take this opportunity to thank everyone who supported and encouraged us during this journey, and helped us overcome the many obstacles we faced along the way. This special group is composed of numerous health and nutrition experts, organic and health food organizations, and most importantly, the many people who continue to reach out to us seeking nutrition alternatives for their babies and toddlers. These stories deeply move us and passionately drive us forward. We have been continuously humbled by your support and remain committed to working tirelessly to bring you the best in market, plant-based, baby formula.
I am optimistic this update letter will shed light on our exciting progress and I look forward to further updating our shareholders in the near future.
CEO, Co-Founder & Director
TSX Venture Exchange
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This press release contains statements that, to the extent they are not recitations of historical fact, constitute “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “will”, “plan”, “hope to”, “intend” or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to: the Company’s commercialization of its products and expected timing, expected go-to-market strategy (including marketing, proposed markets, sales, customer growth and market position), and industry conditions.
Such forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct.
Forward-looking statements made in this press release assume, among others, the successful completion of Else’s proposed scale-up for its products, and such statements are intended to apply only to the infant formula market for ages 12 months and above, and having all necessary regulatory approval as required by each target market.
Numerous risks and uncertainties could cause the Company’s actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: consumer demand for the Company’s products, whether the Company’s current and future products achieve commercialization, uncertainty regarding material changes in laws and regulations, retention of key personnel, the Company’s ability to expand into global markets and competitive developments.
The foregoing list of factors is not exhaustive, and other risks and uncertainties not presently known, or believed to be material, to management Additional information and other factors that could affect the operations or financial results of the Company are set out in the Company's Filing Statement dated May 14, 2019 under the heading “Risk Factors” and may be accessed through the SEDAR website (www.sedar.com).
Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s expectations only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.