Monday - July 7, 2025
BEND, Ore., June 02, 2025 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in its patented GentleDry™ dehydrated snacks and ingredients, announces the execution of a strategic agreement with Kaufman Kapital LLC, resulting in a $1 million cash infusion through the early exercise of existing warrants. The agreement also includes amendments to existing financing terms that strengthen BranchOut’s balance sheet, allow for debt repayment and extend key debt maturities.
Under the terms of the agreement, Kaufman Kapital will exercise in full an existing warrant to purchase 1,000,000 shares of BranchOut’s common stock, providing the Company with $1,000,000 in cash proceeds no later than June 16, 2025.
In addition, the parties agreed to the following amendments:
“This Agreement reflects the strong confidence Kaufman Kapital has in our long-term growth strategy and operational execution,” said Eric Healy, CEO of BranchOut Food. “The warrant exercise provides us with additional capital, while the note extensions improve our financial flexibility and strengthen our balance sheet.”
Kaufman Kapital’s decision to exercise its warrant ahead of schedule and extend key financing terms reflects continued confidence in BranchOut’s trajectory. “We’ve been closely following BranchOut’s progress, and the execution we’re seeing across both operations and commercial growth is outstanding,” said a spokesperson for Kaufman Kapital. “Our early exercise of the warrant reflects our strong confidence in the team, the business model, and the long-term opportunity. We’re bullish on where BranchOut is headed and proud to support their continued momentum.”
The $1 million in proceeds from the warrant exercise will be used to pay down outstanding debt obligations as part of BranchOut’s broader initiative to eliminate all current liability notes payable by the end of 2025. This strategic use of capital reflects the Company’s commitment to strengthening its balance sheet and positioning itself for sustained growth.
Path to Material Cash Flow Improvement
BranchOut is entering a transformative phase in its financial profile, with multiple cost burdens and liabilities set to be eliminated or dramatically reduced in the coming months. As the Company continues to scale production, drive efficiencies at its Peru facility, and grow sales, it expects a significant improvement in operating cash flow. Several one-time or transitional expenses tied to the completion of the facility and initial scale-up phase are now concluding.
These developments, combined with rising production efficiency, growing sales, and the Company’s expectation for positive operating income in 2025, are expected to drive a material improvement in BranchOut’s cash generation profile. With the bulk of non-recurring expenses behind it and a clear plan to reduce all remaining near-term liabilities, the Company is now well-positioned to scale sustainably.
Shelf Registration Supports Strategic Optionality
The recently filed $10 million shelf registration is intended solely to provide strategic flexibility for growth capital and reflects sound financial governance. BranchOut does not expect to raise equity to repay debt or fund operating losses. The Company anticipates generating positive operating income in 2025 and intends to repay all remaining current liability notes payable—including debt maturing on December 31, 2025—through a combination of warrant proceeds and operating cash flow.
The shelf enables BranchOut to act opportunistically should compelling growth opportunities arise, such as expanding the sales team, entering new markets, or accelerating key strategic initiatives. The Company does not anticipate raising more than $1–3 million in the second half of 2025, and only to support long-term expansion if such opportunities materialize.
About BranchOut Food Inc.
BranchOut Food is a leading international food technology company, specializing in the production of high-quality dehydrated fruit and vegetable-based products through its proprietary GentleDry Technology. This next-generation dehydration method preserves up to 95% of the original nutrition of fresh produce, offering superior quality and taste. Protected by over 17 patents, BranchOut’s technology enables it to stand out as a trusted brand, ingredient and a private-label supplier. For more information, visit www.branchoutfood.com or follow us on social media here.
For more information:
info@branchoutfood.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “position,” "outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Last Trade: | US$2.51 |
Daily Change: | -0.26 -9.28 |
Daily Volume: | 100,077 |
Market Cap: | US$19.730M |
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