The Very Good Food Company Issues Statement Regarding Promotional Activity
Vancouver, British Columbia--(Newsfile Corp. - November 3, 2020) - The Very Good Food Company Inc. (CSE: VERY) (OTCQB: VRYYF) (FSE: 0SI) ("VGFC" or the "Company") at the request of OTC Markets and IIROC, would like to address the recent increase in trading activity, provide details around promotional media and confirm that no material information remains undisclosed.
Since the date of the initial IPO, the Company has been featured across a wide variety of media platforms receiving significant publicity in connection with the increasing interest in the plant-based food technology sector. These include Fox Business in connection with the Pamela Anderson partnership, Vegconomist, Motley Fool and most recently YouTube Influencer Jeremy Lefebvre with his 568,000 subscriber account by the name of Financial Education. The Company cautions readers that the aforementioned media content was created by third-parties with whom the Company has no relationship and the content was neither reviewed, authorized nor approved by the Company. In addition, no financial consideration was paid in connection with this content.
As previously disclosed, the Company has engaged a third-party investor relations provider, Future Money Trends, LLC ("FMT") to increase awareness of its publicly traded shares. On October 28 and 29, 2020, three newsletters were distributed by FMT to its mail subscriber lists (collectively, the "Promotional Materials"). The Promotional Materials contained information on the plant-based food market, the development of the Company's business and its recent operational activities.
While FMT is a paid third-party service provider to VGFC, the Company had no knowledge of the distribution of the Promotional Materials until it was notified of such by OTC Markets on October 29, 2020. The Promotional Materials were issued without the Company's prior review or approval, contrary to VGFC's instructions to FMT. The Company has paid a general retainer fee to FMT for services provided under its agreement with FMT but did not pay for the distribution of the Promotional Materials. The Company had no editorial control over the content of the Promotional Materials. VGFC has since reviewed the disclosure in the Promotional Materials and has determined that it contained a materially false statement with respect to the Company's proposed facility in Patterson, California. The Company wishes to clarify that while VGFC has secured a lease for the Patterson facility, it is not yet operational at this time.
The Company acknowledges that the distribution of the Promotional Materials coincided with higher than average trading volume in the Shares, however, the Company has no knowledge or opinion as to whether or not the Promotional Materials themselves affected trading activity.
The Company encourages those interested in VGFC to rely solely on the information included in the Company's news releases, including its news release dated September 3, 2020 regarding the Patterson facility, and its filings with Canadian securities regulatory authorities available under the Company's profile at www.sedar.com and posted with the OTC Markets.
After inquiry by management, the Company confirms that its officers, directors, controlling shareholders and third-party service providers have not sold or purchased the Company's securities within the past 90 days, other than Mitchell Scott, the Company's Chief Executive Officer, who sold 100,000 Shares and 40,000 Shares on October 22 and October 29, 2020, respectively. Mr. Scott reported these sales as required through Canada's System for Electronic Disclosure by Insiders (SEDI).
In the last twelve months, the Company has only engaged FMT to provide investor relations services (as disclosed in the Company's news release dated August 25, 2020). Since becoming a publicly listed company, the Company has not issued any Shares or securities convertible into Shares at prices constituting a discount to the current market rate at the time of the issuance other than with respect to a debt settlement disclosed in our news release dated October 22, 2020 filed under the Company's profile at www.sedar.com
About The Very Good Food Company
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:
Chief Executive Officer and Director
Corporate Communications and Investor Relations
Phone: +1 855-472-9841
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/67418