Good Flour Corp. (OTC:GFCOF) Stock Falls 12%: Here is Why
On Monday, Good Flour Corp. (OTC:GFCOF) was in focus after it made an announcement about a major new development. The company announced that it had been successful in closing the second tranche of its non-brokered private placement, which helped raise gross proceeds to the tune of $75,000.
The second tranche of the offering comprised 300,000 Class A common shares that had been issued for $0.25 each. Since September 2023, the company has closed the placement of two tranches, and warrants have also been exercised lately, which helped in raising aggregate proceeds of $549,500.
In the news release yesterday, the company revealed that it was going to use the net proceeds from the second tranche of the private placement for investor relations, working capital, and general corporate purposes. It was also revealed that the company had also paid a finder’s fee to the tune of as much as $5250 in connection with the private placement. However, all the shares that had been issued in the second tranche would be subject to a hold period of four months, which would expire on April 19, 2024.
A company affiliated with a director of Good Flour Corp., Denis Silva, had also participated and picked up as many as 80000 shares to generate gross proceeds of $20000. Participation of that nature is regarded as a related party transaction as defined in Multilateral Instrument 61-101: Protection of Minority Security Holders in Special Transactions.
As a company, Good Flour Corp. is involved in providing individuals as well as chefs with the best possible blends for the creation of recipes by using its tested mixes. The company is engaged in providing grocery stores and restaurants with allergen- and gluten-free mix options. The company blends its products for texture and taste so that customers can live their lives without having to forego their favorite food items.
