The Real Good Food Company Announces Amendment to Existing Credit Facility to Enhance Liquidity
27 July 2023 - 6:15AM
The Real Good Food Company Inc. (NASDAQ: RGF) (“Real Good
Foods” or the “Company”), a leading health and wellness
frozen and refrigerated food company, today announced the amendment
of its loan and security agreement (“existing credit facility”)
with PMC Financial Services Group, LLC (“PMC”), which is expected
to enhance the Company’s liquidity position by up to $5 million.
“We are pleased to announce this favorable new
amendment, highlighting the confidence our lender has in our
business performance and the strong partner they have been since
our inception,” said Bryan Freeman, Executive Chairman of The Real
Good Food Company. “The optionality and enhanced liquidity provided
by this amendment provides us with access to non-dilutive capital
to fund our growth and transition to positive cash generation.
“Looking ahead to the second half of 2023, we
see an opportunity to refinance our debt and increase liquidity
even more to support further acceleration in our growth. We remain
on track to generate positive operating cash flow from operations
in the second half of 2023, which combined with the liquidity from
our credit facility, will provide us with sufficient capital to
fund our current needs and execute on our 2023 operating plan,”
concluded Freeman.
The amendment increases the limit on the
existing credit facility to $80 million, while keeping all the
other terms largely unchanged.
About The Real Good Food
CompanyReal Good Foods (NASDAQ: RGF) is a leading health
and wellness frozen and refrigerated foods company, providing a
better way to enjoy your favorite foods. The Company’s mission is
to provide “Real Food You Feel Good About Eating”, making
delicious, nutritious foods that are low in sugar, low in
carbohydrates and high in protein. The Real Good Foods family of
products includes breakfast, lunch, dinner, and snacks – available
in over 16,000 stores nationwide with additional direct-to-consumer
options.
To learn more, please visit our website at
realgoodfoods.com or join us on social media @realgoodfoods – where
we maintain some of the largest followings in the frozen food
industry today.
Forward-Looking StatementsThis
press release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, which statements are
subject to considerable risks and uncertainties. Forward-looking
statements include all statements other than statements of
historical fact contained in this press release, including
statements regarding its projected financial results, including net
sales, adjusted gross margin, and adjusted EBITDA and its ability
to increase production at its new facility, improve profitability
and meet its long-term growth objectives. The Company has attempted
to identify forward-looking statements by using words such as
"believe," "estimate," "expect," "intend," "may," "plan,"
"predict," "project," "should," "will," or "would," and similar
expressions or the negative of these expressions.
Forward-looking statements represent
management's current expectations and predictions about trends
affecting the Company’s business and industry and are based on
information available as of the time such statements are made.
Although the Company does not make forward-looking statements
unless it believes it has a reasonable basis for doing so, it
cannot guarantee their accuracy or completeness. Forward-looking
statements involve numerous known and unknown risks, uncertainties
and other factors that may cause its actual results, performance or
achievements to be materially different from any future results,
performance or achievements predicted, assumed or implied by the
forward-looking statements. Some of the risks and uncertainties
that may cause its actual results to materially differ from those
expressed or implied by these forward-looking statements are
described in the section entitled "Risk Factors" in its Annual
Report on Form 10-K for the year ended December 31, 2022. In
addition, readers are cautioned that the Company may make future
changes to its business and operations in response to the impacts
of the COVID-19 pandemic, supply chain disruptions and
macroeconomic challenges, or in response to other business
developments, which changes may be inconsistent with the Company’s
prior forward-looking statements, and which may not be disclosed in
future public announcements.
Investor Relations
ContactAkshay Jagdale (856) 955-1453
ir@realgoodfoods.com
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