Barfresh Completes $2.5 Million Private Placement to Fund Growth of Global
Ready-to-Blend Beverage Business
DENVER, CO -- (Marketwired) -- 03/21/14 -- Barfresh Food Group, Inc.
(Barfresh) (OTCQB: BRFH), a manufacturer of frozen, ready-to-blend
beverages for quick service and casual restaurants, has closed a $2.5
million private placement of common stock and warrants with new and
existing accredited investors, institutional investors and
"Since we secured the worldwide, exclusive patent rights to our
ready-to-blend beverage packs late last year, we have made tremendous
progress," said Riccardo Delle Coste, president and CEO of Barfresh.
"We have extended and enhanced our product range for both local and
international markets, ordered additional manufacturing lines,
engaged large customers as well key domestic and international
"This funding, which reflects strong shareholder confidence in our
capabilities and market strategy, will help propel us to the next
level of growth, allowing us to satisfy the expected demands of our
customers and marketing partners. Our timing could not be more ideal,
with the U.S. smoothie market growing 80 percent to more than $2
billion over the last five years, and the global market expected to
hit $9 billion by 2015.
"We will use this new influx of capital to aggressively pursue these
growth markets as we execute and deliver on business we have been
developing. This includes new agreements for our unique, patented,
ready-to-blend Smoo(TM) beverage system with major quick service
restaurants and additional distribution partners in the U.S. and
Barfresh's proprietary Smoo system uses controlled, pre-packaged
portions to deliver freshly made frozen beverages that are quick,
cost efficient, and do not require significant equipment or space to
produce. Unlike traditional methods, the all-in-one Smoo packs
include everything needed to produce a flavorful, freshly made
smoothie, shake or frappe -- even the ice. This results in a
consistent product every time with no waste and allows for simple,
low-cost inventory management.
Under the terms of the funding transaction, Barfresh sold 5,000,000
common shares for $0.50 per share, along with warrants to purchase up
to an aggregate of 2,500,000 shares of common stock at an exercise
price of $0.60 per share. The warrants will expire in three years.
This release does not constitute an offer to sell, or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
About Barfresh Food Group
Barfresh Food Group, Inc. (OTCQB: BRFH) is
a developer, manufacturer and distributer of ready-to-blend
beverages, including smoothies, shakes and frappes, primarily for
restaurant chains in the quick serve restaurant and casual dining
sectors. The company's proprietary, U.S. patent-pending system uses
portion-controlled pre-packaged beverage ingredients that deliver
freshly made smoothies that are quick, cost efficient and without
waste. For more information, please visit www.barfresh.com/us.
Forward Looking Statements
Except for historical information herein,
matters set forth in this press release are forward-looking within
the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements about the
Company's commercial progress and future financial performance. These
forward-looking statements are identified by the use of words such as
"grow", "expand", "anticipate", "intend", "estimate", "believe",
"expect", "plan", "should", "hypothetical", "potential", "forecast"
and "project", among others. All statements, other than statements of
historical fact, included in the press release that address
activities, events or developments that the Company believes or
anticipates will or may occur in the future are forward-looking
statements. These statements are based on certain assumptions made
based on experience, expected future developments and other factors
the Company believes are appropriate under the circumstances. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company
and may not materialize. Investors are cautioned that any such
statements are not guarantees of future performance. The contents of
this release should be considered in conjunction with the warnings,
risk factors and cautionary statements contained in the Company's
recent filings with the Securities Exchange Commission, including its
Annual Report on Form 10K and Quarterly Reports on Form 10Q.
Furthermore, the Company does not intend, and is not obligated, to
update publicly any forward-looking statements, except as required by
Liolios Group, Inc.
Scott Liolios or Cody Slach
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