Global Food and Ingredients (GFI) has entered agreements relating to its recently created subsidiary Big Sky Milling Inc.
GFI said the proceeds from the agreements will be used by the company's core ingredients division to refinance existing loans and unlock liquidity to invest in further growth of the operation.
In August 2023, GFI created a new subsidiary named Big Sky as part of the previously announced planned minority investment in its pet food ingredients division with 35 Oak Holdings. The current transactions include plans to raise $11.8 million through equity investment and debt in its pet food division, while 35 Oak would contribute a $500,000 investment, raising the total investment in to $12.3 million.
Under the agreements, GFI will transfer all of the assets and liabilities associated with the pet food ingredients business to Big Sky. As part of the transaction, the company will raise $3.45 million through the sale of 49.9% of common shares of Big Sky to 35 Oak.
Once the pet food deal is completed, 35 Oak will also give a $500,000 loan to the GFI's core ingredients division. The transactions are expected to close by the end of January.
GFI is a Canadian plant-based food and ingredients company, connecting the local farm to the global supply chain for peas, beans, lentils, chickpeas and other high protein specialty crops. GFI's vision is to become a vertically integrated farm-to-fork plant-based company providing traceable, locally sourced, healthy and sustainable food and ingredients. GFI is organized into four primary business lines: core ingredients, value-added ingredients, plant-based pet food ingredients and downstream products. Headquartered in Toronto, GFI buys directly from its extensive network of farmers, processes its products locally at its four wholly-owned processing facilities in Western Canada and ships to 37 countries across the world.
Adapted from a press release.
