Vancouver, British Columbia--(Newsfile Corp. - March 23, 2021) - Coho Collective Kitchens Inc. ("Coho Collective" or the "Company"), a creator of innovative ghost kitchen solutions announces the closing of a successful oversubscribed non brokered private placement (the "Offering") for aggregate gross proceeds of $3 million.
With a 98% customer retention rate and a waitlist of over 120 companies for our kitchens, the Company has embarked on a path to substantially scale its operations. With the global pandemic shifting consumer habits towards increased use of delivery applications, Coho Collective has created a restaurant format that helps business owners adapt to this new trend without sacrificing profitability. To fund the global expansion plans for Coho Collective, the Company intends to use half of the proceeds from the Offering to expand to 5 new locations, including expansion through Vancouver, the Sunshine Coast and Victoria. These new locations will allow Coho Collective to gain traction as a market leader on the estimated 1 trillion-dollar ghost kitchen opportunity within the next ten years.
The remaining funds will be used for two key purposes, including the hiring of key talent for corporate expansion and the potential acquisition of relevant companies within the market.
CEO Andrew Barnes stated: "I am thrilled by the sheer amount of support we have received from the community of investors as we look to scale the company to more locations and expand our consumer base throughout the province. I have seen the potential for innovation in the restaurant industry for a long time and the potential that the ghost kitchen model specifically has in solving the many problems which face small and medium food and beverage companies, particularly as consumer dining habits have shifted throughout the pandemic. We are excited to be able to continue to expand and see what the next step in our journey will be."
Additionally, Coho Collective is pleased to announce that Mitchell Scott, CEO of The Very Good Company Inc. ("VERY") will be joining the Board of Directors to help guide the growth of the company; Coho has worked with VERY since the Company's inception and it is expected that this next step will help further leverage the expertise and experience of the VERY team. According to Bloomberg terminal data, VGF was the top performing IPO, globally, in 2020 and has undergone a rapid period of expansion with Mitchell as CEO. His experience building and leading a rapidly growing company will become an asset to Coho as it aims for its own exponential growth over the course of this year.
About Coho Collective Kitchens Inc.
Coho Collective Kitchens is a recognized industry leader and next-generation ghost kitchen innovator bringing turnkey solutions to the world. Coho Kitchens in the business of cultivating a community in support of food entrepreneurs to grow their businesses through access to shared facilities, distribution channels, shared resourcing, and industry expertise.
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Cautionary Note Regarding Forward-Looking Information
In the interests of providing Coho Collective Kitchens INC. ("Coho Kitchen " or the "Corporation") potential investors with information regarding Coho Kitchen, including Management's assessment of future plans and operations relating to the Corporation following the transaction, this document contains certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to herein as "forward-looking statements". Forward-looking statements in this document include but are not limited to statements and tables (collectively "statements") with respect to: proposed acquisitions and strategies for acquisitions, capital projects and expenditures; strategic initiatives; anticipated activity and industry trends; and anticipated performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause Coho Kitchen's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking statements. These assumptions, risks and uncertainties include, among other things: Coho Kitchen's ability to successfully implement strategic initiatives and whether such initiatives yield the expected benefits; future operating results, Coho Kitchen's ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; economic conditions; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Coho Kitchen. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are made as of the date of this document or the dates specifically referenced herein. All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Any financial outlook or future-oriented financial information, as defined by applicable securities legislation, has been approved by management of Coho Kitchen. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Coho Kitchen. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Corporation is not a "reporting issuer" in any province or territory in Canada or equivalent in the United States. There is no guarantee that a going public transaction will be completed or that the Corporation will become listed on any stock exchange. Accordingly, the Corporation may never complete a going public transaction and may never become a "reporting issuer" in any jurisdiction in Canada or the elsewhere.
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