CANADA – Vegan fast food plant-based restaurant chain Odd Burger has announced a non-brokered private placement to raise up to US$4 million through convertible debentures.
According to the official announcement, the debentures have a 36-month maturity. They also carry a 15% annual interest rate.
Odd Burger revealed it intends to use the funds to open smart kitchens and incorporate advanced cooking technology. It also intends to invest in high-quality ingredients to offer healthier options.
The funds will also support expansion, distribution of plant-based products, real estate development and general corporate needs.
The vegan chain also reiterated the debentures can be converted to ordinary shares at US$0.25 each and may be forcibly converted if the share prices increase significantly.
Odd Burger revealed this type of funding was inspired by the company’s strong Q3 2024 performance.
At the end of August, the chain announced its highest quarterly revenue of the year at US$879,367.
The company recorded a gross profit of US$405,651, which is a 46.13% increase compared to the same quarter last year. It is also the sixth consecutive quarterly increase in gross profit.
The strong performance reported in Q3 2024 also coincided with growth and expansion into Canada.
The chain opened two outlets in early August, the first in Edmonton, Alberta, and the second in Ottawa, Ontario.
Odd Burger reiterated that the two new outlets achieved record turnout during their opening, which is another reason for the funding round.
The company revealed it intends to open six more outlets in the country before the end of the year, bringing the total number of operational outlets to 23.
Apart from the new restaurants, the vegan fast food chain also launched a new mobile operations division for food trucks and trailers in Calgary, Alberta.
The fast food chain also revealed it intends to use part of the funds to expand its Consumer Packaged goods (CPG) line at Whole Foods Market, which was opened in Ontario in June. The expansion is intended to further diversify its revenue streams.
James McInnes, Odd Burger’s CEO, welcomed the funding round and reiterated its role in facilitating growth and ensuring the company achieves its objective of making plant-based foods affordable and convenient for customers.
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