Veganz Group Boosts Equity Base with €7.1m Share Issue Amid Plans for Further Capital Raise

Veganz Group has raised €7.1m from a share issue to bolster its equity base. The company plans to use the funds to expand production capacities and finance growth. A further capital raise is planned in the coming weeks through a private placement with strategic investors. Veganz Group reported a €4.8m net loss in the 2024 fiscal year and aims to create shareholder value through its growth strategy and sustainable business model.

Veganz Group, a publicly listed vegan food producer and retailer, has raised €7.1m ($8.2m) from an issue of new shares as part of an ongoing program. The Berlin-headquartered company, which reported a €4.8m net loss in the 2024 fiscal year, aims to use the funds to expand production capacities and finance further company growth [1].

The share offering corresponds to approximately 32% of the company’s share capital and voting rights, and existing shareholders were granted subscriptions at an 11-to-4 ratio. The company plans to conduct a further capital raise in the coming weeks via a private placement with strategic investors in Germany and overseas, with shares to be issued at €15 each [2].

The successful placement is an important milestone for the Veganz Group, demonstrating market confidence in its growth strategy and sustainable business model. Founder and CEO Jan Bredack stated, "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" [1].

Earlier this month, Veganz Group announced the spin-off of its Mililk plant-based milk drinks business to raise external funds. Mililk FoodTech, focused on plant-based milk alternatives, is in the R&D stage of developing juices, smoothies, and functional beverages. The company is also planning to establish six more production plants in Europe and explore setting up a plant in the US for Mililk plant-based milk alternatives [1].

The completed new share offering corresponds to approximately 32% of the company’s share capital and voting rights. Veganz Group has been restructuring 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 [1].

In the 2024 annual results, 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. The DACH region, comprising Germany, Austria, and Switzerland, accounted for 95% of the sales total, with Germany being the company’s largest market at 81% [1].

Both revenue and EBITDA for 2025 are forecast to be flat with 2024 in terms of actual amounts. The company is optimistic about the future, aiming to create substantial shareholder value through its growth strategy and sustainable business model.

References:
[1] https://www.just-food.com/news/veganz-group-raises-e7-1m-from-new-share-issue-to-bolster-equity-base/
[2] https://finance.yahoo.com/news/veganz-group-issues-shares-bolster-104950062.html