Goodfood Market announces $10M bought deal




News Release

GOODFOOD MARKET ANNOUNCES $10 MILLION BOUGHT DEAL FINANCING TO ACCELERATE GROWTH IN WESTERN CANADA, LAUNCH NEW MEAL SOLUTIONS AND INVEST IN AUTOMATION

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Montreal, Québec, April 18, 2018 – Goodfood Market Corp. (the “Company”) (TSX:FOOD) announced today that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the “Lead Underwriter”, and collectively with the syndicate of underwriters, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, 4 million common shares of the Company (the “Common Shares”) at a price of $2.50 per Common Shares (the “Offering Price”) for gross proceeds to the Company of approximately $10 million (the “Offering”).

The Underwriters have also been granted an option (the “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 from the Company up to an additional 400,000 Common Shares at the Offering Price and from the founders of the Company, Jonathan Ferrari, Neil Cuggy and Raffi Krikorian, an aggregate of 200,000 Common Shares for additional gross proceeds of up to $1,000,000 to the Company and $500,000 to the such founders. If the Over-Allotment Option is exercised by the Underwriters in full, aggregate gross proceeds of the Offering (including the Over-Allotment Option) will be $11,500,000.00.

The Common Shares will be offered by way of a short form prospectus to be filed in British Columbia, Alberta, Ontario and Québec. The Company intends to use the net proceeds from the Offering for capital expenditures, working capital and general corporate purposes. The Offering is expected to close on or about May 7, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

“This financing will allow us to accelerate our growth in Western Canada following the greater than expected traction during our pre-launch. Additionally, we will launch new meal solutions for Canadians coast to coast, and unlock gross margin efficiencies from automation investments in our national fulfilment centers,” said Jonathan Ferrari, Chief Executive Officer.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Goodfood

Goodfood is Canada’s leading meal kit company, delivering fresh ingredients that make it easy for subscribers to prepare delicious meals at home every week. Goodfood’s objective is to take the hassle out of cooking, leaving subscribers with the fun part – cooking, sharing with family and eating. Subscribers select their favorite recipes from a variety of original dishes online. The Company prepares a personalized box of fresh ingredients and delivers it to the subscriber’s doorstep with easy step-by-step instructions. Headquartered in Montréal, Canada, Goodfood had 61,000 active subscribers as of February 28, 2018.