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The Food Revolution Group (ASX:FOD) remains open and fully operational
Source: Smallcaps
  • The Food Revolution Group (FOD) has entered a trading halt for the purpose of an upcoming capital raise
  • The company will remain in the halt until December 3, or until the raise is announced in full
  • The raise comes after FOD announced last month its Original Juice Co orange juice is now available at several South Australian independent retailers
  • Looking at its financial position, FOD went cashflow-negative in the September quarter despite increases in revenue and earnings
  • As of September 30, the company had just $325,000 in available funds, enough to last less than half a quarter
  • As a result, FOD decided to increase some prices for its products, hoping to keep the business up and running
  • Shares in FOD last traded for 4.2 cents on November 30

The Food Revolution Group (FOD) has entered a trading halt for the purpose of an upcoming capital raise.

The company will remain in the halt until December 3 or until the raise is announced in full.

The raise comes after FOD announced in November that its Original Juice Co orange juice range is now available at several South Australian independent retailers such as Metcash, Drakes and Foodland.

"It gives me great pleasure to announce that OBL (Original Black Label) brand is now available in South Australian independent retailer banners," CEO and Managing Director Tony Rowlinson stated at the time.

"With South Australia accounting for over 10 per cent of the fresh juice market and the independent retailers accounting for over 30 per cent of sales in SA, this is a fantastic outcome," he added.

Looking at its financial position, FOD had sales revenue totalling $9.6 million for the September quarter, a 28 per cent increase from the same time last year.

Additionally, FOD's earnings before interest, tax, depreciation and amortisation (EBITDA) was $1.5 million.

However, the company is still spending more than it's earning which resulted in a net cashflow-negative result of $1.2 million.

This meant that as of September 30, FOD had only $325,000 left in available funding. At current spending levels, this would last less than half a financial quarter.

As a result, FOD decided to increase some prices for its products, hoping to keep business up and running.

At this point, FOD is yet to disclose how much it will be raising or what it will use the funds for.

Shares in FOD last traded for 4.2 cents on Monday, November 30.


Find out more about this capital raise


FOD by the numbers
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