BranchOut Food Inc. Secures Fourth EnWave Dehydration Machine for New Peru Factory with $40M Production Capacity
Rhea-AI Summary
BranchOut Food (NASDAQ: BOF) announced the acquisition of a 10kW Radiant Energy Vacuum machine from EnWave for its new large-scale facility in Peru.
This machine will be important for R&D, rapid product development, and scaling up production to meet demands from major retailers.
The factory has a $40 million production capacity and is anticipated to enhance BOF's gross margins by 40-50%.
Currently, BOF is fulfilling orders worth over $9 million from leading retailers and expects additional orders throughout 2024.
The new facility and technology aim to fortify BOF's position as an innovative partner for major brands.
Positive
- Acquisition of 10kW Radiant Energy Vacuum machine for R&D and production scale-up.
- New Peru facility with $40 million production capacity.
- Expected gross margin growth of 40-50%.
- Currently fulfilling over $9 million in orders from major retailers.
- Anticipation of additional branded and white-label orders throughout 2024.
- Strengthened relationships with major retailers and brands.
Negative
- No immediate details on financing the new machine and facility.
- Dependence on major retailers and new product requests for growth.
- Potential financial risks associated with the high production capacity if demand falls short.
News Market Reaction
On the day this news was published, BOF declined 1.38%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Radiant Energy Vacuum machine will be used in R&D and rapid product development to meet the needs of major retailer demands
BEND, Ore., June 17, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced it has signed a purchase agreement for a 10kW Radiant Energy Vacuum (REV) machine, built by EnWave Corporation (TSX-V: ENW | FSE: E4U). The machine will be installed at BranchOut Food’s new, large-scale facility in Peru and will be used for R&D, rapid product development and production scale-up in response to new product requests from major retailers and large brands.
Eric Healy, CEO of BranchOut Food, said: “BranchOut Food receives frequent requests to develop and iterate new product concepts for major retailers and brands. Part of our strategy for growth involves being able to respond expeditiously, utilizing our technology to develop new and unique products that have never been available before. We believe this gives us a strong advantage in the market and allows us to fully take advantage of this new technology.”
“The nation’s largest retailer recently commissioned BranchOut to develop and deliver two new products. This has really helped cement our relationship with the retailer, which now views us as a product development partner with the ability to offer true innovation. We are currently working with a large number of major retailers and brands in various stages of developing items for them that could lead to long term production engagements.”
BranchOut Food is currently filling orders valued at over
In May 2024, BranchOut Food announced that it had secured a long-term lease on its facility in Peru. The large-scale factory is capable of
About BranchOut Food Inc.
BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s GentleDry Technology is the next generation in dehydration technology, preserving up to
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
FAQ
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