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Nabati Foods, a Canadian plant-based food tech, has announced that it has raised CA$7.7 million (approx. US$6.2 million) in a private placement financing. The funds will be used to expand the brand’s range, launch into international markets and fuel its go-public plans after a record year of sales driven by mainstream demand for plant-based offerings.
Nabati Foods has completed its private placement of special warrants with total gross proceeds exceeding CA$7.7 million (approx. US$6.2 million), the firm announced earlier in March. The private placement was offered in February this year, with the proceeds to go towards funding its go-public transaction, continued expansion of its vegan-friendly product range and long-term plans to grow its presence globally.
The company has also revealed that it has since restructured to become Nabati Foods Global with a new corporate headquarters in Vancouver, moving from its roots in Edmonton when it began as a farmer’s market stall in 2014.
This financing puts Nabati in an even more robust position to expand our production capacity to meet growing demand from grocery, foodservice, and industrial customers.Ahmad Yehya, CEO, Nabati Foods
In its latest press statement, Nabati says that the company is planning to make an application to launch an IPO on the Canadian Stock Exchange (CSE). 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.
The financing will further fuel its factory expansion to scale up its production capacity, as well as developing new product lines to add to the startup’s range, which currently includes vegan meat analogues 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.
“This financing puts Nabati in an even more robust position to expand our production capacity to meet growing demand from grocery, foodservice, and industrial customers, while also supporting product development and innovation,” said Ahmad Yehya, CEO of Nabati.
We look forward to expanding the Company’s footprint throughout North America and eventually into Europe.Don Robinson, Executive Chairman, Nabati Foods
“We look forward to expanding the Company’s footprint throughout North America and eventually into Europe, commensurate with the demonstrated interest from investors and customers,” added Don Robinson, executive chairman at Nabati.
Nabati’s announcement comes amid surging sales for the firm, with its year-on-year revenue for 2020 recording more than 85% growth and its distribution having widened to include e-commerce, in addition to retail and foodservice availability. In alignment with global trends, Canadian consumers have been shifting towards plant-based options more than ever before, especially since the pandemic-driven elevation in health and sustainability concerns.
“Our team has put in the legwork to build a company with the highest quality plant-based products, and that commitment to quality is starting to pay off, with demand exploding over the past year,” commented Yehya.
Robinson says that with its financing, go-public plans and expansion on the cards, the firm is “in a secure place and teeing up for an impressive 2021 and beyond.”
All images courtesy of Nabati Foods.