Innovative Food Holdings, Inc. (IVFH) (the “Company”), a leading nationwide provider of specialty foods, healthcare foods, gluten free foods, and direct from source artisanal foods, to the professional foodservice market, and the leading, direct-to-consumer, freshly prepared, meal company in the United States, announced today that an investor group led by Yorkmont Capital Partners LP has acquired approximately 3.2 million restricted shares of the Company’s common stock in connection with the Company’s share block purchase option agreement with a former dissident shareholder of The Fresh Diet®.
In addition, the Company has completed a non-brokered private placement of 943,829 restricted shares at $1.30 per share, raising approximately $1.2 million from accredited investors and institutions. There were no warrants or investment banking fees associated with the transaction. Use of proceeds are targeted towards growth of The Fresh Diet® and specific expansion opportunities in the Direct-to-Chef business segments.
Sam Klepfish, CEO of Innovative Food Holdings noted, “Over a period of several months the Company was able to negotiate and structure a block purchase transaction, enabling the replacement of a dissident shareholder with sophisticated and value-added long-term institutional shareholders. We view this transaction as an important step to further broadening the company’s institutional shareholder base and key to building long term value for Innovative Food Holdings shareholders.”
Mr. Klepfish continued, “The simultaneous closing of a $1.2 million private placement provides the Company with additional capital to fuel growth in both The Fresh Diet® and our Direct-to-Chef business. Even though it’s been only six weeks since Bryan Janeczko was appointed CEO of The Fresh Diet®, we are very excited about Bryan’s plans to transition Fresh Diet® to growth later this year. The meal delivery space is one of the biggest Foodtech trends in the market today, and The Fresh Diet® is the nationwide leader in freshly prepared gourmet meals. As a result, we are confident that The Fresh Diet® is uniquely positioned to capitalize on various emerging consumer Foodtech trends. In addition, our Direct-to-Chef distribution platform is performing well and we continue to see robust demand in multiple markets for the Company’s Direct-to-Chef products. I want to thank our shareholders for their continued support, and we look forward to updating shareholders on our progress through our public filings and at our year-end conference call.”
About Innovative Food Holdings
Innovative Food Holdings’ subsidiaries distribute the highest quality, specialty foods to foodservice businesses nationwide and offer freshly prepared meals and ingredients to consumers across the country through a proprietary specialty food platform.
In the direct to consumer channel, The Fresh Diet®, Inc. (www.thefreshdiet.com) is the nationwide leader in the freshly prepared gourmet meal sector, using the finest specialty ingredients. The meals are delivered directly, from kitchen to doorstep to consumers in 12 states, 44 metropolitan areas and over 570 cities and towns across the country using The Fresh Diet® platform. The Fresh Diet® is a wholly owned subsidiary of Innovative Food Holdings.
In the foodservice space, the Company’s industry leading specialty food foodservice direct to chef distribution programs offer over 7,000 specialty food, direct from source, organic, artisanal and gluten free products, which are used on a daily basis by thousands of leading professional chefs across the entire United States.
This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the “Company”) that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially” or “expect.” The Company does not intend to update these forward-looking statements. Information about third parties was supplied to the Company by third parties and we accept no responsibility for its accuracy.