Veganz Group has raised €7.1m ($8.2m) from an issue of new shares as part of an ongoing programme by the publicly listed vegan food producer and retailer.
Berlin-headquartered Veganz Group, which delivered a €4.8m net loss in the 2024 fiscal year, said the share offer has “significantly strengthened its equity base”.
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“The issue of the new shares serves primarily to strengthen the equity base, expand production capacities and finance further company growth,” the owner of the Veganz brand of confectionery, biscuits, cakes and cheeses said in a stock exchange filing.
A further capital raise is planned in the “coming weeks” via a private placement with “strategic investors” in Germany and overseas, the company added. Those shares will be issued at €15 each.
Founder and CEO Jan Bredack said in the filing: “The successful placement is an important milestone for the Veganz Group. It demonstrates the market’s confidence in our growth strategy and our sustainable business model.
“We are convinced that these capital measures will lay the foundation for the next phase of growth in which we aim to create substantial shareholder value.”
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By GlobalDataEarlier this month, Veganz Group announced it was spinning off its Mililk plant-based milk drinks business as a means to raise external funds.
The company said it had created Mililk FoodTech to “leverage hidden reserves within the company” and in “preparation for entry of strategic investors” in the third quarter.
“Advanced discussions” suggest a “pre-money valuation” for Mililk of €80m, Veganz Group said at the time.
Mililk is focused on plant-based milk alternatives but is in the R&D stage of developing juices, smoothies and functional beverages.
Meanwhile, Veganz Group said earlier this month that it planned to establish six more production plants in Europe and was also exploring setting up a plant in the US for Mililk plant-based milk alternatives.
The completed new share offering “corresponds to approximately 32% of the company’s share capital and voting rights”, Veganz Group said. Existing shareholders were granted subscriptions at an 11-to-4 ratio.
Veganz Group said in May that it was looking to restructure the company into five business units under the brands Veganz, Mililk, Happy Cheeze, Peas on Earth and Orbifarm.
Vertical-farming business Orbifarm has already been sold for €30m to an unidentified “third party”.
In the 2024 annual results issued in May, Veganz Group reported that cash and cash equivalents had shrunk to €800,000 from €5.3m in 2023, while sales dropped 34% to €10.8m.
It said the DACH region, namely Germany, Austria and Switzerland, accounted for 95% of the sales total with Germany the company’s largest market at 81%.
Meanwhile, EBITDA losses for 2024 narrowed to €2.4m from €6.3m a year earlier, and similarly, the net loss shrank to €4.8m from €9.5m.
Both revenue and EBITDA for 2025 were forecast to be flat with 2024 in terms of actual amounts.
