Nabati Foods raises $7.7m, plans for IPO: 'The company received thousands of inquiries from interested parties looking to invest'
“We are very pleased with the interest we have received. 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,” said Nabati CEO, Ahmad Yehya.
“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.”
Nabati previously announced its intentions to raise $4m, but due to strong demand, increased the amount to $7.7m.
"Once the financing was announced for Nabati, the company received thousands of inquiries from interested parties looking to invest," said Eat Beyond CEO Patrick Morris.
"This new capital can help to catapult Nabati to the next level by enabling the company to expand its production capacity to meet the ever-growing demand for its products. Eat Beyond looks forward to working closely with Nabati to support their innovation, growth, and expansion."
Based in Edmonton, Canada, where its products are sold in around 300 stores, Nabati Foods makes a line of dairy-free cheesecakes, dairy-free 'cheez' shreds, and plant-based chicken and beef alternative patties. The company joined Eat Beyond's public portfolio of plant-based food brands last year, and in January 2021 expanded its retail distribution to over 100 independent store locations across the US (with support from KeHE Distributors) as well as online and through foodservice channels.
The capital infusion from the funding round will be used to expand Nabati's US distribution, expand its production capacity with a new facility (that will be seven-times larger than its current operations), develop new product lines, and fund the company's restructuring plans to go public on the CSE.
Nabati also announced plans to enter the European market in 2022.
"Nabati has seen unprecedented growth over the past year, despite the uncertainty consumers are facing due to the COVID-19 pandemic," said Yehya.
According to Nabati, without the help of marketing and advertising the company grew its sales by over 33% in Canada last year, compared to 2019, and expects to surpass this growth in 2021.
"We designed our products and mix of distribution channels to be able to weather economic challenges, and we are now seeing the fruits of that labor."
