The Top Plant-based Food Stocks to Watch in New Year 2020
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t the moment, 55pc of Americans have added plant-based foods to their diets, according to Food Business News.
Better, according to an NBC News report, market research firm NPD found that 16 percent of Americans say they 'regularly' use plant-based alternatives to meat and dairy products, such as almond milk and meat substitutes.
More unexpected, though, is that 89 percent of the people eating all of these tell NPD that they're not vegetarian or vegan — they just like variety in their diets. Fast food giants are jumping on the trend, as well, including McDonald's, Burger King, White Castle, Dunkin, and even Starbucks. It's all creating sizable opportunity for companies such as Else Nutrition Holdings Inc. (TSX-V BABY)(OTCQB BABYF), Burcon NutraScience Corp. (TSXBSU)(OTCQBBUROF), Beyond Meat Inc. (NASDAQBYND), Kellogg Company (NYSEK), and Tyson Foods Inc. (NYSETSN).
Else Nutrition Holdings Inc. (TSX-V BABY)(OTCQB BABYF) BREAKING NEWS Else Nutrition Holdings Inc., a developer of novel plant based infant nutrition is pleased to announce that it has entered into a investment agreement with NewH2 Limited, a subsidiary of Health and Happiness (H&H) International Holdings Limited, a Hong Kong Stock Exchange Company (HK1112), pursuant to which NewH2 has agreed to an investment of C$5.75 million in the Company, as part of an aggregate private placement offering of up to C$8.0 million. Pursuant to the private placement the Company will issue up to 12,383,900 (the Units) at a price of C$0.646 per Unit. Each Unit will consist of one common share and 0.25 share purchase warrants, with each whole warrant (a Warrant) entitling the holder to acquire one additional common share of the Company at an exercise price of C$0.969 per share for a period of thirty months from the closing date. NewH2 has agreed to purchase 8,900,928 of the Units being offered which will represent approximately 11.15% of the Company's issued and outstanding common shares assuming all Units are sold. On closing of the offering, NewH2 and the Company will enter into an investor rights agreement pursuant to which NewH2 will be granted certain rights to maintain its percentage holdings of common shares in the Company through participation in future financings, and the right to hold one board seat on the Company's board of directors. Closing of the offering is expected to occur on or about February 26, 2020, and is subject to obtaining stock exchange approval.
The company intends to use the proceeds of the offering to accelerate its anticipated launch in the United States scheduled for the second quarter of 2020, to enhance its toll manufacturing capabilities, to build its distribution relationship with H&H and expedite sales in the new territories, and to undertake additional marketing initiatives, as well as for general working capital. The Company is also pleased to announce a Memorandum of Understanding (MOU) with Health and Happiness (H&H) Hong Kong Limited for the future distribution of non-dairy non-soy Baby formula and children nutrition drinks in the following markets France, Hong Kong China (SAR), Cross-Border China, Australia, Italy, and Mainland China. The parties will work together in the coming months to formalize distribution agreements and develop business plans for the aforementioned markets.
We are thrilled about this relationship, and about the strong alignment between Else Nutrition and the H&H group. The strategic alignment with such a reputable, global and premium, health and wellness brand-builder, coupled with the investment, provide growth potential for our brand globally. It marks a significant milestone in our mission to change the way we feed our babies and families for generations to come, using real, clean, plant-based alternatives, said Hamutal Yitzhak, CEO & Co-Founder of Else Nutrition. H&H Group CEO, Laetitia Garnier, said H&H is very pleased to make this investment and is looking forward to a successful partnership with Else Nutrition. Our NewH2 innovation fund is working on some highly innovative ventures that align with emerging consumer trend. The plant based trend is undeniably growing globally, but there are too few products that can fulfil consumers needs while bringing the right nutrition. Else's revolutionary 100% plant-based non-soy infant formula is a unique proposition and partnering with Else a unique opportunity for us to join forces with a very experienced and forward thinking team, and to drive growth from an early stage with huge upside in a booming category.
✔️ The Top Plant-based Food Stocks to Watch in New Year 2020
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