TORONTO — On January 16, Global Food and Ingredients Ltd. shared. (GFI) that it has entered into agreements related to its recently created subsidiary Big Sky Milling Inc. According to GFI, the agreements will generate investment capital of $12.3 million, which will unlock “significant value” for the existing pet food ingredients business.
The agreements are related to GFI’s agreement with 35 Oak Holdings, where GFI announced plans to raise $11.8 million through an equity investment and debut, and 35 Oak will contribute a $500,000 investment, raising total investment at $12.3 million.
Funds from the transactions will go toward GFI’s core business components, with the business entering into a management services agreement with Big Sky, which will generate annual revenue of at least $180,000. GFI plans to transfer to Big Sky all assets and liabilities related to its pet food ingredients business. As part of this, GFI will sell a 49.9% stake of common shares in Big Sky to 35 Oak, with the aim of raising an additional $3.45 million for the company.
Additionally, 35 Oak will issue loans of up to $10 million to Big Sky.
These transactions are expected to close around January 31.
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