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- Cash balance of CAD $10 million and runway for well over a year;
- On track to sign definitive manufacturing agreement with US infant nutrition partner during Q2-2020;
- US product launch planned for Q2-2020; and
- New online store and pre-order ability within weeks
VANCOUVER, March 26, 2020 /CNW/ - Else Nutrition Holdings Inc. (the "Company" or "Else Nutrition" or "Else") (TSXV: BABY) (OTCQB: BABYF), a developer of novel plant based infant and toddler nutrition, is pleased to provide a corporate update. Given the unforeseen circumstances caused by the coronavirus (COVID-19) pandemic across the globe, the Company feels it is imperative to communicate its business progress and corporate status to stakeholders and the communities we serve.
Given the impact of the pandemic to many aspects of everyday life and to the Company's business, including travel, transportation and manufacturing, Else is making a conscious effort to be increasingly capital efficient and conservative, while striving to execute its goals successfully. The Company is making all efforts to launch its plant-based toddler nutrition in the US in Q2-2020 as planned.
Runway and Balance Sheet
In February the Company closed a CAD $8 million equity financing, which included a strategic investment of CAD $5.75 million by NewH2 a subsidiary of Health & Happiness (H&H) International Holdings Ltd. H&H is a Hong Kong Stock Exchange (code 1112-HK) company with revenues of over US$1.46 billion (2018).
The Company's current cash and cash equivalents are about CAD $10 million, with no long-term debt.
The Company has sufficient liquidity and capital to fund its operations for well over a year while fully executing on all aspects of the business.
Product Launch & Marketing
As previously announced, the Company plans to launch its plant-based toddler nutrition product in the US in Q2-2020, and continues working hard on several fronts to achieve this target.
The Company had planned to soft launch the products at Natural Food Expo West, during the first week of March, however, given the pandemic, the event was cancelled. However, in preparation for the event and planned launch, Else completed a comprehensive branding process which includes product packaging, social media channels and a new website that features an online store. The online store will open for pre-orders in the coming weeks. The new website can be visited at: www.elsenutrition.com.
Over the next few weeks, the Company will begin sending product samples to consumers, influencers and retail partners in conjunction with a social and digital marketing campaign for the launch. Additionally, the Company is actively engaged with potential retail brokers and distributors that have a track record of getting novel products onto retail shelves. The initial geographical focus of these efforts is Los Angeles and New York City.
While Q2-2020 remains the targeted launch date the Company will closely monitor the global pandemic and resulting market conditions to ensure a successful product launch.
As a part of H&H's strategic investment in Else the Company has also entered into a distribution MOU whereby the two parties will negotiate definitive distribution agreements for several territories including: France, Australia and China (Hong Kong; Cross-Border and Mainland China). The Company expects to have the first definitive agreement in place in Q3-2020.
Furthermore, in February 2020 the Company announced an MOU with a US-based manufacturing partner (see February 4, 2020 press release) and continues to work towards a definitive manufacturing agreement that includes a capex investment with the partner. The Company expects to have the definitive manufacturing agreement by April 2020.
"We are very appreciative of our team, shareholders, suppliers, partners, customers and communities for their ardent support and understanding during these unpredictable times and wish everyone the best as we navigate the next few months together. We remain unwavering in our mission to bring sustainable, clean, plant-based baby and toddler nutrition alternatives to families worldwide – fulfilling the outpouring of requests we've had from eager parents. We look forward to updating everyone with positive news and encourage anyone with a question or concern to reach out to us directly," said Ms. Hamutal Yitzhak, CEO and Co-Founder of Else Nutrition.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities described herein have not been registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the U.S. Securities Act and any applicable state securities laws.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Private Placement and the NewH2 Private Placement and the completion thereof and the use of proceeds. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: delays in implementing the business plans including timing of product launch resulting from the Covid-19 pandemic, the receipt of all necessary regulatory approvals, use of proceeds from the financing, capital expenditures and other costs, and financing and additional capital requirements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company will not update any forward-looking statements or forward-looking information that is incorporated by reference herein, except as required by applicable securities laws.
SOURCE Else Nutrition Holdings Inc.