Join our daily newsletter At The Bell to receive exclusive market insights
- Forbidden Foods (FFF) is set to acquire health food company Blue Dinosaur for $4 million following a successful capital raise
- The company received binding commitments from investors to subscribe to an equity placement of $5.5 million at 24 cents per share
- Following this, the company penned an agreement to acquire 100 per cent of shares in Blue Dinosaur for up to $4 million on a cash-free and debt-free basis
- Forbidden Food’s acquisition is expected to occur in October, subject to approvals
- Forbidden Foods is up 6 per cent, trading at 26.5 cent at 12:30 pm AEST
Forbidden Foods (FFF) is set to acquire Blue Dinosaur following a successful capital raise.
The company received binding commitments from new and existing investors to subscribe to an equity placement of $5.5 million at 24 cents per share.
Following this, the company penned an agreement to acquire 100 per cent of shares in Blue Dinosaur for up to $4 million on a cash-free and debt-free basis.
$2 million will be paid in a cash consideration, along with $1.2 million in fully paid ordinary shares and an earnout of $0.8 million paid following Blue Dinosaur achieving minimum revenue of $3.75 million within twelve months of the acquisition.
Blue Dinosaur is a health focused bar and bites company, targeting an active and health-conscious demographic, specifically millennials.
Blue Dinosaur’s products are hand-baked, using only wholefood ingredients. Its protein and energy bars are gluten free and do not contain any soy, dairy, preservatives, added sugars, colours, stabilisers or flavours. The items are stocked across over 8,000 major supermarkets, petrol stations and gyms and cafes.
The company delivered FY21 revenue of $3.7 million, with a gross profit margin of 44 per cent and a reported EBITDA of $194,000.
“We are excited to bring the vibrant Blue Dinosaur brand into our growing portfolio of plant-based and nutritious food products,” said Marcus Brown, Co-founder and CEO of Forbidden Foods.
“With over 8,000 sales outlets and exports to eight international markets, Blue Dinosaur’s established and diversified distribution footprint will give rise to significant cross sell opportunities for the Company and accelerate our growth profile in the markets in which we operate.”
Forbidden Food’s acquisition is expected to occur in October, subject to approvals.
Forbidden Foods was up 6 per cent, trading at 26.5 cent at 12:30 pm AEST.
