Emblem Financing Provides Significant Incremental Liquidity to Drive Operational Turnaround Supporting Continued Growth
CHERRY HILL, N.J., Sept. 26, 2024 (GLOBE NEWSWIRE) -- The Real Good Food Company, Inc. (NASDAQ:RGF) ("Real Good Foods" or the "Company"), a leading health and wellness frozen and refrigerated foods company, today announced it has amended its existing financing with PMC Financial Services Group, LLC ("PMC") and entered into an agreement with Emblem Investments Fund I, LP ("Emblem") for a new term loan of $60 million. The Company will apply $8 million of the proceeds to repay the existing PMC financing and $52 million for general corporate purposes and transaction fees.
These transactions support the expansion of the Company's manufacturing capabilities and drive several corporate initiatives to position the Company for profitable long-term growth. Additionally, as part of the agreement, the Company issued 19.99% of its outstanding equity to Emblem in the form of Class C Units of its subsidiary, Real Good Food LLC, which are exchangeable into the Company's common shares, further indicating alignment with the Company's focus on long-term value creation.
Tim Zimmer, CEO of Real Good Foods, said: "We are thrilled to announce these transformational transactions, which provide us with significant liquidity and therefore the capability to make critical investments in our supply chain and strategic initiatives. This will better position our supply chain to meet strong demand for our products and improve service for our customers, which sets the foundation for profitable long-term growth. These transactions are a testament to the confidence the Company's lenders have in the business and its long-term potential."
About Emblem
Emblem is a private equity firm based in Boston that makes ...
