The issue has a face value of RON4 million and includes 40,000 bonds with 3-year maturity at a face value of RON100/ bond.
The bonds were issued in October 2020 and have a fixed interest rate of 9% a year, payable on a quarterly basis.
“The two financing rounds carried out during less than a year and a half by Golden Foods Snacks prove once again that investors on the Bucharest Stock Exchange are willing to support developing companies and even more the companies whose products they consume. We are talking about a cumulative amount of RON8.7 million, money that the company uses for development,” said Radu Hanga, Bucharest Stock Exchange board chairman.
“We want to develop this business through constant growth, to develop new and quality products and to improve production capacity, as well as the relationship with investors to be continuous and long-lasting. We believe in the importance of a good relationship with our investors and customers and we evaluate each project in terms of the benefit it can bring both for the quality of our products and for a healthy lifestyle of our customers. In the next period, we want to discover the potential and usefulness of new projects through the capital market as an integral part of our company consolidation strategy,” said Sorin Petre, Business Controller, Golden Foods.
The company conducted a private placement for the sale of bonds between October 15 and October 30, 2020, carried by BRK Financial Group. The bonds were issued at the end of October and were allocated to 70 investors, of which 6 legal entities and 64 individuals.
The funds attracted by the company will be used to increase working capital (EUR300,000), as well as for investments, including the purchase of the building where it operates in Filipestii de Padure (EUR500,000), to reduce the cost of rent, and the purchase of a production line for fluffs, to expand the range of products in the portfolio (EUR200,000).
The company first stepped on the Bucharest Stock Exchange stage in December 2019, when it listed a bond issue with a cumulative value of RON4.7 million and 3-year maturity.
Golden Foods Snacks was established in 2009 and is currently one of the main players active on the salty snack market in Romania and, at the same time, produces and packs private labels for the following customers: Carrefour, Cora, Mega Image and Rewe / Penny.
The company has a share capital of RON23.5 million. GF Holdings Limited holds 55.78% of the shares of Golden Foods Snacks (cash contribution), and Golden Brands Limited holds 44.22% of the shares (contribution in kind – the “ELMAS nature inspires” brand).