CALGARY, Alberta and NEW YORK - Above Food Corp., a company specializing in vertically integrated food solutions, and Bite Acquisition Corp., a special purpose acquisition company, announced the completion of their business combination on Thursday.
The combined entity, Above Food Ingredients Inc., is expected to list its common shares and warrants on the Nasdaq Stock Market under the ticker symbols "ABVE" and "ABVE.W," respectively, starting July 1, 2024.
Lionel Kambeitz, the CEO of Above Food Ingredients Inc., highlighted the significance of the merger, stating that it advances the company's mission to transform the food value chain. The company's "seed-to-fork" platform is designed to address the challenges of food security through regenerative agriculture, ingredient manufacturing, and consumer products.
Above Food, with its proprietary supply chain, aims to address a total addressable market opportunity exceeding $200 billion in plant-based substitutes and related sectors. The company boasts a customer base of approximately 260 global customers and a retail distribution network of over 35,000 points.
The firm's production capabilities are set to enable revenue generation of up to $650 million, which is more than double its fiscal year revenue ending January 2023. This scalability is backed by a series of certifications that affirm the quality and integrity of its products, including BRC AA, HACCP, Regenerative Organic Certified, and Non-GMO Verified, among others.
The leadership team, led by Kambeitz, will continue to steer the new entity, supported by a board of directors with extensive experience in the food production ecosystem and a strong commitment to ESG practices.
Alberto Ardura, former Chairman and CEO of Bite, expressed confidence in the growth strategy and value creation potential of the newly public Above Food.
This development follows the approval of the business combination by Above Food shareholders on June 7, 2024, and Bite stockholders on April 29, 2024. The company has emphasized its readiness to leverage its integrated model to drive margins and shareholder value.
The information in this article is based on a press release statement from Above Food.
InvestingPro Insights
As Above Food Ingredients Inc. begins its journey on the Nasdaq Stock Market, investors are closely monitoring its performance and potential. According to InvestingPro data, the company currently holds a market capitalization of $69.59 million.
Investors should note that the stock has experienced significant price volatility, as evidenced by a 3-month price total return of -18.88% and a 6-month return of similar magnitude at -18.62%. This volatility is underscored by the InvestingPro Tip that the stock generally trades with high price volatility.
Despite these challenges, management's strategy includes aggressive share buybacks, an action that can reflect confidence in the company's prospects and potentially support the stock price. Another critical metric for investors to consider is the company's P/E ratio, which currently stands at an adjusted -40.91 for the last twelve months as of Q1 2024. This indicates that the company is not profitable over the last twelve months, aligning with another InvestingPro Tip highlighting the absence of profitability in this period.
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