Barfresh Food Group Inc (OTCMKTS:BRFH) has seen a surge of volume as it continues to trade along its $0.60 base after the Company announced it raised $2.3 million in a private placement of equity securities.
BRFH made a big move at the end of last year after the Company announced a number of exciting developments including an exclusive sales agreement with PepsiCo North America Beverages.
Barfresh Food Group Inc (OTCMKTS:BRFH) is a developer, manufacturer and distributor of ready-to-blend beverages, including smoothies, shakes and frappes, primarily for restaurant chains and the foodservice industry. The company’s proprietary, patented and patent pending system uses portion-controlled pre-packaged beverage ingredients that deliver freshly made frozen beverages that are quick, cost efficient, better for you and without waste.
PepsiCo North America Beverages, a division of PepsiCo, Inc., is the exclusive sales representative in North America within the foodservice channel for Barfresh’s full line of beverages. In addition, Barfresh has an exclusive distribution partnership with the leading food distributor in North America.
Barfresh beverages are pre-portioned, pre-packaged and perfectly consistent every time. The blended line of smoothies, shakes, and frappes contain no preservatives and no artificial flavors or colors, are gluten free, kosher certified and the smoothies are made with real fruit. The Barfresh process reduces operating costs by requiring only a blender, reduces labor, and eliminates waste, creating higher profit margins for operators.
In August BRFH announced an update on recent business developments; among other things the Company said they have added over 500 new customers and have begun shipping to 137 new customers during the month of July.
The Company has continued to expand distribution agreement with the nation’s leading food distributor, and products have now been rolled out to 30 (of the 74) regional locations in 17 states. During July, the Company began selling products to new customers including a regional foodservice facilities operator in the Southeast, a Houston based deli sandwich chain, a number of schools and Universities, and a number of travel and entertainment locations.
To Find out the inside Scoop on BRFH Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
CEO Riccardo Delle Coste said “Our first quarter fiscal year 2016 sales increased 173% from the year ago quarter. In addition, sales in the first quarter exceeded the last three quarters of last year combined. Additionally, ordering trends for July and August have continued at a strong pace. Our business model is gaining momentum as we continue to hire sales representatives and achieve wins for our distribution business, and our large national accounts.”
Earlier this year BRfH announced it has signed a two-year sales agreement with an organization that represents 3,340 bowling centers nationwide, representing over 70% of bowling centers located in the United States. Under the agreement, Barfresh will work with the organization to provide Barfresh’s line of smoothies, shakes and frappes, and expects to begin selling Q1 2016.
In November BRFH announced an update on recent business developments regarding their agreement with PepsiCo North America Beverages, a division of PepsiCo, Inc., making PepsiCo their exclusive sales representative within the food service channel, to present Barfresh’s line of ready-to-blend smoothies and frozen beverages throughout the United States and Canada. The PepsiCo agreement will enables them to drive sales with PepsiCo’s enormous customer base.
On September 28 BRFH announced it has raised $2.3 million in a private placement of equity securities. In accordance with the terms of this private placement, the Company is issuing 3,593,754 shares of common equity at a price of $0.64 per share. The transaction also contains warrant coverage of 50%, exercisable for a term of 5 years at $0.75 per share.
Riccardo Delle Coste, the Company’s CEO stated, “Barfresh has made great strides in the past several months toward building the foundation for future sales growth, with the successful implementation of a new manufacturing partner, several key customer wins, the initiation of in-market tests in national accounts, and expansion into new channels.”
We have a Monster Pick Coming. Subscribe Right Now!
Currently trading at a $59 million market valuation BRFH does have $3.5 million in the treasury, manageable debt and very small but fast growing revenues. The stock also has a history of heavy promotion. But BRFH is an exciting story developing in small caps; the maker of frozen, ready-to-blend beverages has been building its customer base at a rapid rate as well as expanding its distribution reach and they just announced an exclusive sales agreement with PepsiCo North America Beverages. We will be updating BRFH as events unfold so make sure you are subscribed to Microcapdaily so you know what is going on with BRFH.
Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!
Disclosure: we hold no position in BRFH either long or short and we have not been compensated for this article.