Borealis Foods Inc. (NASDAQ:BRLS), an Ontario-based food products company with a market capitalization of $126 million, announced key updates in its corporate and financial structure in a recent SEC filing. According to InvestingPro data, the company faces challenges with its current ratio of 0.44, indicating potential liquidity concerns.
The company has amended the terms of its existing promissory notes, extending the maturity dates for loans from Oxus Capital PTE LTD and Roya Foods, Inc.
The first amendment with Oxus Capital PTE LTD, initially due on February 7, 2025, has been extended by one year to February 7, 2026. Similarly, the second amendment with Roya Foods, Inc., which was set to mature on December 31, 2024, now has a new maturity date of December 31, 2025. These extensions provide Borealis Foods with additional time to fulfill its financial obligations under the promissory notes, which form part of its total debt burden of $46.7 million.
In a separate development, the company disclosed the departure of a member of its Board of Directors. On Sunday, Kanat Mynzhanov notified the company of his resignation from the board, effective February 1, 2025. Mynzhanov, who is also the CEO of Tavia Acquisition Corp., is stepping down to focus on his responsibilities at Tavia. His resignation is not due to any disagreements with Borealis Foods' operational, policy, or practice matters.
These corporate adjustments are part of Borealis Foods' ongoing efforts to manage its capital structure and governance effectively. The company's stock has declined by 35% over the past six months, with InvestingPro analysis revealing several additional financial health indicators and growth metrics available to subscribers.
In other recent news, Borealis Foods Inc. has revealed an expansion of its product distribution to more than 1,300 Walmart (NYSE:WMT) stores across the United States. This includes the introduction of new ramen flavors developed in collaboration with celebrity chef Gordon Ramsay. The company has also launched two new high-protein ramen flavors under the "Ramen Noodles by Chef Ramsay" label, which will be exclusively available at Walmart stores.
Borealis Foods has seen considerable growth in gross margins and anticipates a stronger performance in the second half of 2024. The company has recently welcomed Reza Soltanzadeh as the new Chief Executive Officer and has initiated a stock buyback program, authorizing the repurchase of up to $3 million of its common shares.
The company reported a gross profit for the past two quarters, credited to strategic efforts to improve its product mix. This includes a partnership with Gordon Ramsay for their Chef Woo ramen brand and an anticipated sales boost with their award-winning Woodles product. Additional institutional sales channels are being pursued, backed by partnerships with Food Systems for the Future and Feeding America's "Fight Hunger. Spark Change." program. These are recent developments at Borealis Foods Inc.
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