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The Real Good Food Company Announces Debt Refinancing Transactions with PMC Financial Services and Emblem Investments Fund I, LP

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The Real Good Food Company (NASDAQ: RGF) has announced significant debt refinancing transactions with PMC Financial Services and Emblem Investments Fund I, LP. The company has amended its existing financing with PMC and entered into a new term loan agreement of $60 million with Emblem. Of this amount, $8 million will repay existing PMC financing, while $52 million will be used for general corporate purposes and transaction fees.

These transactions aim to support the expansion of manufacturing capabilities and drive corporate initiatives for profitable long-term growth. As part of the agreement, the company issued 19.99% of its outstanding equity to Emblem in the form of Class C Units of its subsidiary, exchangeable into common shares. CEO Tim Zimmer expressed that these transactions provide significant liquidity for critical investments in supply chain and strategic initiatives, positioning the company to meet strong product demand and improve customer service.

La Real Good Food Company (NASDAQ: RGF) ha annunciato importanti operazioni di rifinanziamento del debito con PMC Financial Services e il fondo Emblem Investments Fund I, LP. L'azienda ha modificato il proprio finanziamento esistente con PMC ed 猫 entrata in un nuovo accordo di prestito a termine di 60 milioni di dollari con Emblem. Di questa cifra, 8 milioni di dollari serviranno a ripagare il finanziamento esistente di PMC, mentre 52 milioni di dollari saranno utilizzati per scopi aziendali generali e spese di transazione.

Queste operazioni mirano a sostenere l'espansione delle capacit脿 di produzione e a promuovere iniziative aziendali per una crescita sostenibile e profittevole a lungo termine. Nell'ambito dell'accordo, l'azienda ha emesso il 19,99% del proprio capitale sociale in circolazione a Emblem sotto forma di Class C Units della sua controllata, convertibili in azioni ordinarie. Il CEO Tim Zimmer ha dichiarato che queste operazioni forniscono una liquidit脿 significativa per investimenti critici nella catena di approvvigionamento e iniziative strategiche, posizionando l'azienda per soddisfare la forte domanda di prodotti e migliorare il servizio clienti.

La Real Good Food Company (NASDAQ: RGF) ha anunciado importantes transacciones de refinanciamiento de deuda con PMC Financial Services y el fondo Emblem Investments Fund I, LP. La empresa ha modificado su financiamiento existente con PMC y ha firmado un nuevo acuerdo de pr茅stamo a plazo de 60 millones de d贸lares con Emblem. De esta cantidad, 8 millones de d贸lares se destinar谩n a pagar el financiamiento existente de PMC, mientras que 52 millones de d贸lares se utilizar谩n para fines corporativos generales y tarifas de transacci贸n.

Estas transacciones tienen como objetivo apoyar la expansi贸n de las capacidades de fabricaci贸n y fomentar iniciativas corporativas para un crecimiento rentable a largo plazo. Como parte del acuerdo, la empresa emiti贸 el 19,99% de su capital social en circulaci贸n a Emblem en forma de Unidades Clase C de su filial, canjeables por acciones ordinarias. El CEO Tim Zimmer expres贸 que estas transacciones proporcionan una liquidez significativa para inversiones cr铆ticas en la cadena de suministro e iniciativas estrat茅gicas, posicionando a la empresa para satisfacer la fuerte demanda de productos y mejorar el servicio al cliente.

毽柤 甑 響鸽摐 旎错嵓雼(雮橃姢雼: RGF)電 PMC 旮堨湹 靹滊箘鞀れ檧 鞐犽笖霠 韴瀽 韼霌 I, LP鞕鞚 毂勲 鞛“鞝 瓯半灅毳 氚滍憸頄堨姷雼堧嫟. 須岇偓電 PMC鞕鞚 旮办〈 旮堨湹鞚 靾橃爼顷橁碃 鞐犽笖霠橁臣 頃粯 6觳滊 雼煬鞚 靸堧鞖 旮瓣皠 雽於 瓿勳暯鞚 觳搓舶頄堨姷雼堧嫟. 鞚 欷 800毵 雼煬電 旮办〈 PMC 旮堨湹鞚 靸來櫂頃橂姅 雿 靷毄霅橂┌, 5觳2氚彪 雼煬電 鞚茧皹 旮办梾 氇╈爜鞙茧 氚 瓯半灅 靾橃垬耄岇棎 靷毄霅╇媹雼.

鞚 瓯半灅電 鞝滌“ 電ル牓 頇曥灔鞚 歆鞗惽陿瓿 靾橃澋靹 鞛堧姅 鞛リ赴 靹膘灔鞚 鞙勴暅 旮办梾 鞚措媹靺旐嫲敫岆ゼ 於旍頃橁赴 鞙勴暣 靹り硠霅橃棃鞀惦媹雼. 順戩暯鞚 鞚柬櫂鞙茧 須岇偓電 鞐犽笖霠橃棎 19.99%鞚 氚滍枆 欤检嫕鞚 氚滍枆頄堨姷雼堧嫟 鞚搓矁鞚 鞛愴殞靷潣 C 韥措灅鞀 鞙犽嫑 順曧儨搿, 氤错喌欤茧 鞝勴櫂 臧電ロ暕雼堧嫟. CEO 韺 歆愲ǜ電 鞚 瓯半灅霌れ澊 瓿店笁毵濌臣 鞝勲灥鞝 鞚措媹靺旐嫲敫岇棎 雽頃 欷戩殧頃 韴瀽鞐 雽頃 靸侂嫻頃 鞙犽彊靹膘潉 鞝滉车頃橃棳 臧曤牓頃 鞝滍拡 靾橃殧毳 於╈”顷橁碃 瓿犼皾 靹滊箘鞀るゼ 臧滌劆頃 靾 鞛堧姅 鞙勳箻毳 毵堧牗頃滊嫟瓿 氚濏様鞀惦媹雼.

La Real Good Food Company (NASDAQ: RGF) a annonc茅 d'importantes op茅rations de refinancement de sa dette avec PMC Financial Services et le fonds Emblem Investments Fund I, LP. L'entreprise a modifi茅 son financement existant avec PMC et a sign茅 un nouveau contrat de pr锚t 脿 terme de 60 millions de dollars avec Emblem. Sur ce montant, 8 millions de dollars serviront 脿 rembourser le financement existant de PMC, tandis que 52 millions de dollars seront utilis茅s 脿 des fins corporatives g茅n茅rales et pour des frais de transaction.

Ces transactions visent 脿 soutenir l'expansion des capacit茅s de production et 脿 promouvoir des initiatives d'entreprise pour un croissance rentable 脿 long terme. Dans le cadre de l'accord, l'entreprise a 茅mis 19,99 % de ses actions en circulation 脿 Emblem sous forme d'unit茅s de classe C de sa filiale, 茅changeables contre des actions ordinaires. Le PDG Tim Zimmer a d茅clar茅 que ces transactions offrent une liquidit茅 significative pour des investissements cl茅s dans la cha卯ne d'approvisionnement et des initiatives strat茅giques, positionnant l'entreprise pour r茅pondre 脿 une forte demande de produits et am茅liorer le service client.

Die Real Good Food Company (NASDAQ: RGF) hat bedeutende Umschuldungstransaktionen mit PMC Financial Services und dem Emblem Investments Fund I, LP angek眉ndigt. Das Unternehmen hat seine bestehenden Finanzierungsvereinbarungen mit PMC ge盲ndert und ein neues Terminkreditabkommen 眉ber 60 Millionen Dollar mit Emblem abgeschlossen. Von diesem Betrag werden 8 Millionen Dollar zur R眉ckzahlung der bestehenden PMC-Finanzierung verwendet, w盲hrend 52 Millionen Dollar f眉r allgemeine Unternehmenszwecke und Transaktionsgeb眉hren verwendet werden.

Diese Transaktionen zielen darauf ab, die Erweiterung der Produktionskapazit盲ten zu unterst眉tzen und Unternehmensinitiativen f眉r lukratives, langfristiges Wachstum voranzutreiben. Im Rahmen der Vereinbarung hat das Unternehmen 19,99% seines ausstehenden Eigenkapitals an Emblem ausgegeben in Form von Klasse-C-Einheiten seiner Tochtergesellschaft, die in Stammaktien umwandelbar sind. CEO Tim Zimmer 盲u脽erte, dass diese Transaktionen eine signifikante Liquidit盲t f眉r wesentliche Investitionen in Lieferkette und strategische Initiativen bieten, wodurch das Unternehmen gut positioniert ist, um einer starken Produktnachfrage gerecht zu werden und den Kundenservice zu verbessern.

Positive
  • Secured $60 million new term loan from Emblem Investments Fund I, LP
  • Amended existing financing with PMC Financial Services Group,
  • $52 million available for general corporate purposes and transaction fees
  • Increased liquidity to support manufacturing expansion and corporate initiatives
  • Potential for improved supply chain capabilities to meet product demand
Negative
  • Issued 19.99% of outstanding equity to Emblem, potentially diluting existing shareholders
  • $8 million used to repay existing debt, reducing net new capital

Insights

This debt refinancing is a significant development for Real Good Foods, providing $60 million in new capital. The transaction addresses several key areas:

  • Improved liquidity: $52 million for corporate purposes after debt repayment
  • Enhanced manufacturing capabilities
  • Support for strategic initiatives
  • Potential for improved profitability

The 19.99% equity stake given to Emblem aligns the lender's interests with long-term value creation. This deal structure suggests confidence in RGF's growth prospects but also indicates the company's need for substantial capital to fund its turnaround efforts. Investors should monitor how effectively management deploys this capital to improve operations and drive growth. The focus on supply chain improvements could lead to better customer service and potentially increased market share, but execution risks remain.

This refinancing deal comes at a important time for Real Good Foods, operating in the competitive frozen and refrigerated foods sector. The health and wellness focus of their products aligns with growing consumer trends, presenting significant market opportunities. However, the need for such substantial financing suggests challenges in scaling operations profitably.

Key points to consider:

  • Potential for improved market position with enhanced manufacturing capabilities
  • Opportunity to capitalize on health-conscious consumer trends
  • Risk of dilution for existing shareholders due to the equity component
  • Execution risk in implementing operational improvements

The success of this refinancing will largely depend on management's ability to effectively utilize the new capital to drive operational efficiencies and capture market share. Investors should closely monitor upcoming quarterly results for signs of improved financial performance and market penetration.

Emblem Financing Provides Significant Incremental Liquidity to Drive Operational Turnaround Supporting Continued Growth

CHERRY HILL, N.J., Sept. 26, 2024 (GLOBE NEWSWIRE) -- (NASDAQ: RGF) (鈥淩eal Good Foods鈥 or the 鈥淐ompany鈥), a leading health and wellness frozen and refrigerated foods company, today announced it has amended its existing financing with PMC Financial Services Group, LLC (鈥淧MC鈥) and entered into an agreement with Emblem Investments Fund I, LP (鈥淓mblem鈥) for a new term loan of $60 million. The Company will apply $8听尘颈濒濒颈辞苍 of the proceeds to repay the existing PMC financing and $52听尘颈濒濒颈辞苍 for general corporate purposes and transaction fees.

These transactions support the expansion of the Company鈥檚 manufacturing capabilities and drive several corporate initiatives to position the Company for profitable long-term growth. Additionally, as part of the agreement, the Company issued 19.99% of its outstanding equity to Emblem in the form of Class C Units of its subsidiary, Real Good Food LLC, which are exchangeable into the Company鈥檚 common shares, further indicating alignment with the Company鈥檚 focus on long-term value creation.

Tim Zimmer, CEO of Real Good Foods, said: 鈥淲e are thrilled to announce these transformational transactions, which provide us with significant liquidity and therefore the capability to make critical investments in our supply chain and strategic initiatives. This will better position our supply chain to meet strong demand for our products and improve service for our customers, which sets the foundation for profitable long-term growth. These transactions are a testament to the confidence the Company鈥檚 lenders have in the business and its long-term potential.鈥

About Emblem

Emblem is a private equity firm based in Boston that makes catalyzing investments in market-leading businesses.聽Emblem has a flexible mandate, a long-term approach, and a focus on alignment with its partners.

About Real Good Food Company

Real Good Foods, Inc. (NASDAQ: RGF) is a leading health and wellness frozen and refrigerated foods company, providing a better way to enjoy your favorite foods. The Company鈥檚 mission is to provide 鈥淩eal Food You Feel Good About Eating鈥, 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 鈥 available in over 16,000 stores nationwide with additional direct-to-consumer options.

To learn more, please visit our website at or join us on social media @realgoodfoods, where we maintain some of the largest followings in the frozen food industry today.

Forward-Looking Statements

This 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 the timing of the filing of Company鈥檚 late periodic reports and amendments to prior periodic reports, the Company鈥檚 plan to request a hearing to appeal its delisting determination by Nasdaq, and the Company鈥檚 plan to request various extension periods to regain compliance with the Listing Rule. The Company has attempted to identify forward-looking statements by using words such as 鈥渁nticipate,鈥 "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鈥檚 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, including the risk of further delays in the filing of the Company鈥檚 late periodic reports and restated financial statements in amendments to prior periodic reports, the discovery of additional information regarding the error identified in the Company鈥檚 previously issued consolidated financial statements, the scope of the anticipated restatement of previously issued financial statements as a result of the error, the remediation by management and the Company鈥檚 independent registered public accounting firm of the identified material weaknesses in internal control over financial reporting, the Panel鈥檚 determination following the Company鈥檚 appeal of its delisting decision, the Panel鈥檚 decision whether or not to grant the Company various extension periods following the submission of a hearing request to regain compliance with the Listing Rule, the Company鈥檚 ability to regain compliance with the Listing Rule and other continued listing standards and other risk factors described in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022 and other documents filed with or furnished to the SEC by the Company from time to time. These forward-looking statements speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.

Investor Relations Contact
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(949) 259-4987
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FAQ

What is the total amount of the new term loan secured by Real Good Foods (RGF)?

Real Good Foods (RGF) secured a new term loan of $60 million from Emblem Investments Fund I, LP.

How much of the new loan will Real Good Foods (RGF) use to repay existing debt?

Real Good Foods (RGF) will use $8 million of the new loan to repay existing financing from PMC Financial Services Group,

What percentage of equity did Real Good Foods (RGF) issue to Emblem Investments?

Real Good Foods (RGF) issued 19.99% of its outstanding equity to Emblem Investments Fund I, LP in the form of Class C Units of its subsidiary, Real Good Food

How does Real Good Foods (RGF) plan to use the majority of the new loan proceeds?

Real Good Foods (RGF) plans to use $52 million of the loan proceeds for general corporate purposes, transaction fees, and to support the expansion of manufacturing capabilities and corporate initiatives.

The Real Good Food Company, Inc.

NASDAQ:RGF

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2.18M
1.63M
5.43%
26.99%
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Packaged Foods
Food and Kindred Products
United States of America
CHERRY HILL