Eshbal closes $721,670 private placement for gluten-free expansion

Eshbal Functional Food Inc. (TSXV: ESBL) completed the initial closing of its non-brokered private placement offering, raising $721,670 through the sale of 4,245,117 units.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional common shares at $0.30 until February 10, 2028. Securities issued under the offering are subject to resale restrictions until June 11, 2026.

The company will use proceeds to advance acquisition opportunities as part of its roll-up strategy in the gluten-free industry, fund product development, and provide working capital. Eshbal paid $10,721 in fees and issued 63,070 warrants to Haywood Securities Inc. in connection with the offering.

"Eshbal is in discussions with several companies in support of its roll up strategy in the artisanal gluten free industry. The proceeds of this private placement will help accelerate this strategy to drive the scale and manufacturing efficiencies that are needed by mainstream grocers," said Tomer Bar Meir, CEO of Eshbal.

The company may complete additional closings of the offering. Eshbal focuses on gluten-free and "Better for You" food categories and is pursuing a consolidation strategy in the artisanal gluten-free market. The company has a distribution agreement with Dare 2 be Different Foods for potential placement in Walmart and more than 300 stores in the northeastern United States.

The information is based on a company press release statement.

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