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Nabati Foods, a Canadian plant-based food tech, has announced the offering of a private placement financing for up to CA$4 million (US$3.13 million). The proceeds of the private placement will go towards the company’s go-public transaction and continued expansion of its vegan-friendly product range.
Alberta-based food tech Nabati has announced the offering of a private placement for proceeds of up to CA$4 million (US$3.13 million), brokered by Mackie Research Capital Corporation. The private placement will be for up to 8 million special warrants at a price of CA$0.50 (US$0.39) per special warrant, which will convert to one free-trading share upon the company’s planned listing on the Canadian Securities Exchange (CSE).
The startup, founded in 2014, currently offers a range of plant-based products including vegan-friendly meat products such as chicken, burger patties, fish and beef grounds made from pea protein, as well as cheese alternatives and vegan cheesecake desserts made from coconuts. Nabati’s entire line-up is certified vegan, non-GMO, gluten-free, kosher and free from refined sugars.
Demand for our products has been growing rapidly in both Canada and the United States. We have a long production queue for all of our products, and are rapidly progressing the setup of our second facility up and running to increase production capacity and enable us to meet current demand and deliver new innovations.Ahmad Yehya, CEO, Nabati
Proceeds from the private placement will help the brand continue expanding its plant-based product line, as well as go towards financing its go-public transaction, said the firm in a press release. Funds will additionally fuel the company’s plan to enter new markets.
Nabati’s announcement comes amid record-breaking sales for the firm, with its year-on-year revenue for 2020 showing more than 85% growth. Over the past year, the company has added e-commerce and industrial sales to its distribution footprint, in addition to its existing grocery and foodservice availability.
We are thrilled and can’t wait to be moving from our pilot plant to a production facility that will deliver on new innovations we can’t wait to release but also meet demand from current and future clients.Ahmad Yehya, CEO, Nabati
“Demand for our products has been growing rapidly in both Canada and the United States. We have a long production queue for all of our products, and are rapidly progressing the setup of our second facility up and running to increase production capacity and enable us to meet current demand and deliver new innovations,” said Ahmad Yehya, CEO of Nabati.
At the moment, Nabati’s range is available across 300 stores in Canada and 120 locations in the U.S. market, with a European launch on the cards for 2022. The firm also alluded in a press release a future product launch it described as “groundbreaking”.
“We love innovation, and we are excited about several projects,” said Yehya. “We are thrilled and can’t wait to be moving from our pilot plant to a production facility that will deliver on new innovations we can’t wait to release but also meet demand from current and future clients.”
Once the firm goes public, it will join the growing list of plant-based startups listed on the CSE, which at the moment includes The Very Good Food Company, which was the second vegan startup in the world to go public behind U.S. food tech giant Beyond Meat, and Vancouver-based Modern Meat.
As consumers continue to shift towards plant-based food options, many Canadian companies have been reporting record sales and have dramatically expanded their operations to meet demand. The Very Good Food Company, for instance, recently took to doubling down its hold in the fast-growing market by acquiring Victoria-based vegan cheese brand The Cultured Nut, marking its first foray into the plant-based dairy space.
Meanwhile, Vancouver’s PlantX, the e-commerce platform for everything plant-based, entered the U.S. market for the first time and will soon be opening up its first brick-and-mortar location in the country in San Diego.
Canadian food giants are tapping the opportunity too, including Maple Leaf Foods, who has bought out a new processing plant under its plant-based subsidiary Greenleaf Foods to meet skyrocketing demand for its Lightlife tempeh.
All images courtesy of Nabati Foods.