Forbidden Foods (ASX: FFF) has secured $1 million through a share placement to accelerate its sales momentum. The funds will be used primarily to increase inventory levels for its Blue Dinosaur and Oat Milk Goodness (OMG) product ranges, as well as to support sales, marketing, and operational activities.
The placement involved the issue of approximately 142.8 million fully paid ordinary shares at $0.007 per share. It was conducted with no discount to the last trading price on 11 February 2025 but represented a 12.5% discount to the 15-day Volume Weighted Average Price (VWAP) of $0.008. Investors in the placement will also receive one free attaching listed option (ASX: FFFO) for every two shares subscribed, exercisable at $0.015 and expiring on 25 October 2027.
The capital raise follows strong financial performance in the second quarter of FY25, with net sales reaching $1.17 million, marking a 104% increase from the previous quarter and a 77% rise year-on-year. Cash receipts from customers totalled $1.16 million, reflecting a 55% quarter-on-quarter gain and an 80% year-on-year increase. Blue Dinosaur products saw particularly strong demand, with e-commerce sales rising 94% year-on-year to $383,000. The company has also implemented cost-reduction initiatives, leading to a significantly lower cost base.
Forbidden Foods is engaged in advanced discussions with several counterparties for additional product-stocking agreements, which are expected to further strengthen its sales momentum. Chief executive officer Alex Aleksic welcomed the placement, stating, “This capital raise further validates our post-acquisition growth strategy and the company’s outlook for the remainder of CY25 and beyond.”
JP Equity Partners and GBA Capital acted as joint lead managers for the placement. The funds raised will help Forbidden Foods scale up production, meet growing demand, and position the company for continued growth in the Australian market.
