The Very Good Food Company Announces Closing of Oversubscribed $8.5 Million Bought Deal Public Offering

Vancouver, British Columbia--(Newsfile Corp. - August 7, 2020) - The Very Good Food Company Inc. (CSE: VERY) ("VGF" or the "Company") today announced the successful completion of its previously announced bought deal prospectus offering (the "Offering") of 6,555,000 units of the Company (the "Units") at a price of $1.30 per Unit for aggregate gross proceeds of $8,521,500, which included the full exercise of the over-allotment option by the underwriter for the Offering, Canaccord Genuity Corp. ("Canaccord").

Mitchell Scott, VGF's Chief Executive Officer stated: "We are delighted with the closing of this oversubscribed financing which will support key components of our growth strategy such as expanding our operations into the United States to access a very large and growing market for plant-based foods. We look forward to updating our shareholders as we progress into the next phase of our growth objectives."

Each Unit consisted of one common share in the capital of the Company (each, a "Common Share") and one-half of one warrant (each whole common share purchase warrant, a "Warrant"), with each Warrant entitling the holder to purchase one additional Common Share at a price of $2.00 until February 7, 2022.

The Company intends to use the proceeds from the Offering to pursue an expansion to the United States, for continued investment in its product portfolio through research and development and potential accretive acquisitions within the plant-based sector, as well as for general corporate purposes.

Canaccord received a cash commission in the amount of 8% of the gross proceeds of the Offering for their services and an amount of broker warrants equal to 8% of the aggregate number of Units sold pursuant to the Offering (other than for sales to certain subscribers on a president's list agreed upon by the Company and Canaccord for which a reduced commission was payable), with each broker warrant exercisable to acquire a Unit at an exercise price of $1.30 per Unit until February 7, 2022, with each Unit to be comprised of one Common Share and one-half of one warrant. Canaccord also received a corporate finance fee comprised of 80,000 Units, each Unit comprised of one Common Share and one-half of one warrant with each whole warrant exercisable for one additional Common Share at a price of $2.00 until February 7, 2022.

The Offering was completed pursuant to a short form prospectus dated July 28, 2020 filed in the provinces of British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia. A copy of the final prospectus is available under the Company's profile on SEDAR at www.sedar.com.

The Company today also announced that it will complete a small private placement to accommodate certain investors not able to participate in the over-subscribed Offering. The private placement will consist of up to 88,500 units which will have the same pricing and terms as the Units issued under the Offering but will be subject to a hold period of four months and one day from issuance. The Company expects to close the private placement by the middle of August.

This news release does not constitute an offer for sale of securities, nor a solicitation ‎for offers to buy any securities in the United States, nor in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities referred to in this news release have not been, nor will they be, registered under the 1933 Act and may not be offered or sold within the United States or to, or for ‎the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. ‎registration requirements.

About

The Very Good Food Company Inc. is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. Our mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date we have developed a core product line under The Very Good Butchers brand.

For further information, please contact:

Mitchell Scott
Chief Executive Officer and Director

Kevan Matheson
Corporate Communications and Investor Relations

Email: invest@verygoodbutchers.com

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information under applicable securities laws. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not limited to the intended use of the net proceeds from the Offering such as for an expansion to the United States and the proposed private placement and expected timing for the closing thereof. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation that future developments in the ongoing COVID-19 pandemic, which the Company cannot currently predict, may require it to adjust, delay or postpone, either temporarily or permanently, any one of the principal purposes of the intended use of proceeds from the Offering. Other factors that could cause actual results to differ materially from those described in such forward looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations, dilution, limited history of operations and revenues and no history of earnings or dividends, competition, economic changes and the impact of and risks associated with the ongoing COVID-19 pandemic and their effects on the Company's operations. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Not for dissemination in the United States or for distribution to U.S. newswire services.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61302

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