Chicago-based Vita Food Products, Inc. has announced that five individuals, or their affiliated entities, including company president Stephen D. Rubin and chief operating officer Clifford K. Bolen, are to invest a total of US$2.5m in the company.
The investors are to receive an aggregate of 1,000,000 shares of common stock; three-year warrants to purchase 500,000 shares of common stock at an exercise price of $5.00 per share; and five-year warrants to purchase an additional 500,000 shares of common stock at an exercise price of $7.50 per share.
Other investors include Delphi Casualty Co., in which Glenn S. Morris, another director of Vita, owns 44%; a trust of which John C. Seramur, also a Vita director, serves as trustee; and one unnamed third-party investor.
“We are very pleased that several of our officers and directors have elected to invest in the company,” Rubin said. “This indicates our strong belief in Vita Food Products and its future. We intend to use the funds to reduce debt, increase working capital and allow the company to consider potential expansion, including through acquisitions.”
Specialising in kosher food, Vita produces seafood products such as herring and packaged salmon, but also markets cream cheese, cocktail sauce, tartar sauce and horseradish. Its brands include Vita, Elf and Grand Isle.