Forbidden Foods Raises $1M to Accelerate Blue Dinosaur and OMG Sales
Forbidden Foods Limited has raised $1 million to boost inventory for its Blue Dinosaur and Oat Milk Goodness brands, following a remarkable 104% jump in quarterly sales.
- Raised $1 million through a placement at $0.007 per share
- Q2 FY25 net sales surged 104% quarter-on-quarter to $1.17 million
- Funds earmarked for inventory build and marketing to meet growing demand
- Strong ecommerce growth with Blue Dinosaur sales up 94% year-on-year
- Non-Executive Director Daniel Rootes to participate in the placement
Capital Raise to Support Accelerated Growth
Forbidden Foods Limited (ASX: FFF) has successfully secured firm commitments to raise $1 million through a placement of approximately 142.8 million new shares at $0.007 each. This capital injection comes on the back of a stellar operational performance in the second quarter of fiscal 2025, where net sales doubled compared to the previous quarter.
The funds will primarily be deployed to increase inventory levels for the company’s flagship Blue Dinosaur and Oat Milk Goodness (OMG) product lines. This strategic inventory build is designed to capitalize on recent demand surges and to leverage economies of scale in production. Additionally, a portion of the proceeds will support sales and marketing initiatives as well as operational expenses.
Strong Sales Momentum and Operational Efficiency
Forbidden Foods reported net sales of $1.17 million in Q2 FY25, representing a 104% increase from the prior quarter and a 77% rise year-on-year. Cash receipts from customers also rose sharply by 55% quarter-on-quarter to $1.16 million, underscoring robust cash flow generation. Ecommerce sales for Blue Dinosaur products alone surged 94% compared to the prior corresponding period, highlighting the brand’s growing digital footprint.
The company has also benefited from a considerably lower cost base following the implementation of several cost-reduction initiatives, which should enhance margins as sales scale further.
Investor Confidence and Strategic Outlook
The placement was conducted at a price with no discount to the last traded price, signaling strong investor confidence. Notably, Non-Executive Director Daniel Rootes has committed to participate in the raise, subject to shareholder approval, reinforcing internal alignment with the company’s growth strategy.
CEO Alex Aleksic expressed optimism about the company’s trajectory, noting that discussions are well-advanced with multiple counterparties for additional product-stocking agreements. These deals are expected to further consolidate Forbidden Foods’ sales momentum in upcoming quarters.
With a clear focus on scaling inventory and expanding market reach, Forbidden Foods appears well-positioned to sustain its rapid growth in the competitive health and wellness food sector.
Bottom Line?
Forbidden Foods’ $1 million capital raise sets the stage for continued sales acceleration, but execution on inventory and partnerships will be key to sustaining momentum.
Questions in the middle?
- How quickly can Forbidden Foods convert increased inventory into sustained sales growth?
- What impact will new product-stocking agreements have on revenue visibility?
- Will the company maintain its cost discipline as it scales operations?
