Eshbal closes initial tranche of private placement for $721,670

Eshbal Functional Food Inc. (TSXV: ESBL) completed the first closing of its non-brokered private placement, raising $721,670 through the sale of 4,245,117 units, according to a company statement.

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

The company plans to use the proceeds to advance acquisition opportunities as part of its roll-up strategy within the gluten-free industry, along with ongoing product development and working capital needs. 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 Vancouver-based company may complete additional closings of the offering. Eshbal focuses on gluten-free and "Better for You" food categories and recently entered into an agreement with Dare 2 be Different Foods for potential distribution in Walmart and more than 300 stores in the Northeast United States.

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