Israeli nutrition company Else Nutrition has received CAD 5.75 million ($4.34 million) in funding and signed a distribution agreement with Health and Happiness (H&H) to develop its plant-based infant formula.
The funding forms part of an investment agreement with NewH2 Limited, a subsidiary of nutrition and wellness company Health and Happiness, which has agreed to an aggregate private placement offering of up to CAD 8 million ($6.03 million).
NewH2 has also agreed to purchase 8,900,928 units which represent 11.15% of Else Nutrition’s issued and outstanding common shares, assuming all units are sold.
Else Nutrition will use the capital to accelerate its anticipated launch in the US later this year, enhance its toll manufacturing capabilities and fund marketing initiatives.
Both companies have entered into an agreement for the future distribution of Else Nutrition’s non-dairy non-soy baby formula and children nutrition drinks in France, Hong Kong China (SAR), cross-border China, Australia, Italy and mainland China.
The investment deal will therefore build Else Nutrition’s distribution relationship with H&H and expedite sales in the new territories.
Hamutal Yitzhak, CEO & co-founder of Else Nutrition, said: “The strategic alignment with such a reputable, global and premium, health and wellness brand-builder, coupled with the investment, provides growth potential for our brand globally.
“It marks a significant milestone in our mission to change the way we feed our babies and families for generations to come, using real, clean, plant-based alternatives.”
H&H group CEO Laetitia Garnier said: “The plant-based trend is undeniably growing globally, but there are too few products that can fulfil consumers needs while bringing the right nutrition.
“Else’s revolutionary 100% plant-based non-soy infant formula is a unique proposition and partnering with Else is a unique opportunity for us to join forces with a very experienced and forward thinking team, and to drive growth from an early stage with huge upside in a booming category.”
The offering is expected to close on 26 February 2020 subject to obtaining stock exchange approval.
© FoodBev Media Ltd 2020