US refrigerated foods group Vaughan Foods has closed a private placement financing to raise US$1.9m.
The company issued 926,500 units at $2.00 each. Every unit consists of five shares of restricted common stock and two 5-year restricted warrants to purchase one share of common stock at $0.70 per share.
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The company said it plans to use the proceeds of the private placement on its expansion plans, capital spending, continued enhancements to its enterprise resource-planning system and for general corporate purposes.
“The net proceeds will strengthen our balance sheet and help us expand our operations capacity as we continue our efforts to become the first national company with regional facilities that will manufacture and deliver a full array of refrigerated fresh foods multiple times per week,” said Herb Grimes, chairman and CEO.
