Barfresh reaches agreements for around $5.87m in financing

Frozen, ready-to-blend beverages manufacturer Barfresh Food Group has secured financing to support the company’s future growth.

Binding definitive agreements have been reached to secure nearly $5.87m financing through the sale of common stock at $0.50 per share with 50% warrant coverage with an exercise of $0.60 per share.

Barfresh Food Group CEO Riccardo Delle Coste said: “This financing dramatically improves our liquidity and will provide the appropriate capital for profitable expansion in our many and growing channels throughout 2020 and beyond.

“We are very well positioned to continue the penetration in the quick serve restaurant space. In addition, I believe this is a strong vote of confidence from several of our significant existing stockholders participating in this offering.”

The ready-to-blend manufacturer noted that out of $5.87m about $3.825m will be used for growth capital.

Barfresh explained that its overall debt decreased by around $2m with holders changing their existing debt into the company’s current offering of common stock and warrants.

Coste added: “We have spent many years establishing an organisation with ample manufacturing capacity, logistics and distribution network to successfully service our expected new business.

“We have dramatically improved our cost structure and are in a much better position today to efficiently deploy this growth capital.”

Barfresh Food Group produces beverages such as smoothies, shakes and frappes for restaurant chains and the foodservice industry.

In November 2016, Barfresh received a strategic investment of $10m from cheese manufacturer Unibel.