Eshbal closes $721,670 first tranche of financing

Executive Summary

• Eshbal Functional Food Inc. has completed the first closing of its non-brokered private placement, raising gross proceeds of $721,670.
• The offering consisted of 4,245,117 units, each comprising one common share and one full common share purchase warrant.
• Proceeds are designated for advancing acquisition opportunities under the company's roll-up strategy in the gluten-free industry, as well as for product development and working capital.

Key Details

• Transaction Structure: Non-brokered private placement; initial tranche closed.
• Units Issued: 4,245,117 units.
• Gross Proceeds: $721,670.
• Unit Composition: Each unit consists of one common share and one full common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.30 per share.
  • Expiration Date: February 10, 2028.
  • Entitlement: One additional common share per warrant.
• Resale Restrictions: All securities are subject to resale restrictions until June 11, 2026.
• Use of Proceeds:
  • Advancing acquisition opportunities identified as part of the company's roll-up strategy within the gluten-free industry.
  • Continuing product development.
  • Project and working capital.
• Advisor Compensation:
  • Cash Fee: $10,721 paid to Haywood Securities Inc.
  • Warrants Issued: 63,070 warrants issued to Haywood Securities Inc.
• Future Closings: The company may seek to complete additional closings of the offering.

Notable Quotes

• "Eshbal is in discussions with several companies in support of its roll-up strategy in the artisanal gluten-free industry. The proceeds of this private placement will help accelerate this strategy to drive the scale and manufacturing efficiencies that are needed by mainstream grocers," said Tomer Bar Meir, chief executive officer of Eshbal.