BranchOut Food Inc. (NASDAQ:BOF) traded 3.5% lower in Thursday’s premarket session after the snack technology company revealed the pricing of a new $2.5 million institutional equity offering.
The financing involves the sale of 1,034,600 common shares to Bard Associates, Inc., with Alexander Capital L.P. serving as sole bookrunner. BranchOut said the fresh capital will bolster working capital and help fund key growth initiatives.
BranchOut, known for its natural fruit and vegetable snacks made using its proprietary GentleDry™ dehydration process, noted that October marked its strongest month on record, generating $1.7 million in revenue — equivalent to a $20 million annualized run rate.
“This financing is a powerful validation of our momentum and mission,” said Eric Healy, CEO of BranchOut Food.
The company plans to scale its production capacity early next year by adding a fourth high-capacity production line to its facility, positioning it as the world’s largest GentleDry™ manufacturer.
BranchOut is also shifting away from a made-to-order model in favor of an inventory-based production system, a move aimed at cutting shipping costs, increasing operational efficiency, and supporting larger retail partnerships. The newly raised funds will help support inventory build-out and capital expenditures tied to these strategic improvements.