Forbidden Foods Limited (ASX:FFF) Secures $1M Capital Raise to Accelerate Sales
Capital Raise Details
Forbidden Foods Limited (ASX:FFF) has secured firm commitments to raise $1M through the issuance of 142,857,143 new fully paid ordinary shares at $0.007 per share. The placement follows strong operational performance in Q2 FY25, with net sales increasing by 104% from the previous quarter.
Financial Performance
In Q2 FY25, Forbidden Foods reported net sales of $1.17M, a 104% increase from the prior quarter and 77% year-on-year. Cash receipts from customers reached $1.16M, up 55% quarter-on-quarter and 80% year-on-year. Ecommerce sales for Blue Dinosaur products surged 94% compared to the prior year.
Use of Funds
The raised funds will primarily be used to build inventory for the Blue Dinosaur and Oat Milk Goodness ranges to meet growing demand. Additionally, capital will be allocated towards sales and marketing and operational costs. The company is engaged with several counterparties for additional product-stocking agreements, aiming to consolidate recent sales momentum.
Executive Comments
Forbidden Foods’ Chief Executive Officer, Alex Aleksic, said: “We’re very pleased to have secured firm commitments for this capital raise which further validates our post-acquisition growth strategy, as well as the Company’s outlook for the remainder of CY25 and beyond. Through this Placement, there have been a number of new shareholders come onto the register. I would like to take this opportunity to welcome them, as well as thank existing shareholders for their ongoing support.
“The funds raised from this Placement will directly assist in FFF growing its inventory, to meet recent product demand. As previously advised, the Company is engaged with several counterparties for additional product-stocking agreements and these are well-advanced. We expect the execution of these agreements will leave Forbidden Foods well positioned to further consolidate its momentum with additional sales increases over the coming quarters.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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