Canada’s Goodfood Market to raise $25 mln on bought deal basis

Canadian meal kit company Goodfood Market Corp. has agreed to offer 7.1 million common shares at a price of $3.50 per share for gross proceeds of about $25 million on a bought deal basis.

Goodfood plans to use the net proceeds to further automate both the Montreal and Calgary facilities and extend Western Canada’s production capacity.

The underwriters, led by GMP Securities L.P., have also been granted an over-allotment option, exercisable in whole or in part and from time to time, at any time until 30 days after the closing date of the offering to purchase up to about $3 million of the company shares.

Additionally, the company will also use the funds to advance the roll-out of the breakfast and ready-to-eat meal categories, while increasing Goodfood’s value proposition. The offering is anticipated to be wrapped up on or about February 22, 2019, and is subject to certain conditions.