Next Investors logo grey

Food Revolution Group cashed up for a sustained growth in 2021


Published 29-MAR-2021 16:22 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Hot on the heels of releasing impressive sales data across its Juice Lab Wellness Shots lines and bringing on board its largest customer in Woolworths, The Food Revolution Group Limited (ASX: FOD) has secured an investment of $3 million from two strategic global institutions via Evolution Capital Advisors.

This will assist in supporting the company’s s rollout of the Juice Lab Wellness range, as well as funding the group’s new cleanroom plant and equipment, effectively fast-tracking the introduction of more wellness supplements from the new facility.

There will also be benefits in transitioning the company’s overall financing as FOD emerges with a strengthened balance sheet from the placement of approximately 85.7 million shares at an issue price of 3.5 cents.

While the issue price represents a 14% discount to the last closing price of 4 cents, it needs to be borne in mind that the company’s shares have performed extremely strongly in March, increasing 45% from 2.8 cents on March 4 to last week’s close of 4 cents.

Management also pointed to debt refinancing initiatives that would be undertaken under the new structure, a development that is likely to see improved borrowing terms and potentially less of an earnings drag in terms of finance costs.

FOD uses a range of processing technologies, including Current Counter Extraction (CCE) technology which was developed in conjunction with Australia’s CSIRO to extract juice from fruit and vegetables.

The company is aiming to generate shareholder value through exploring opportunities for growth in the functional food, beverage and nutraceutical markets in Australian and key international markets, including China.

Consequently, a strengthening in FOD’s financial position is timely as it will provide the company with the capital to undertake initiatives in areas of product development and upscaling to cater for increased volumes, as well as marketing established and new products in Australia and overseas.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.