TORONTO, May 23, 2024
/PRNewswire/ - Borealis Foods Inc. ("Borealis" or the "Company")
(Nasdaq: BRLS), a pioneering food tech company dedicated to
crafting premium-quality, nutritious food solutions accessible to
all, today announced that CEO Reza
Soltanzadeh has issued a letter to shareholders highlighting
the Company's recent developments and growth initiatives.
Dear Fellow Shareholders:
I'm thrilled to share with you the exciting progress Borealis
has made, setting the stage for even greater achievements ahead.
Our dedicated team has been hard at work, and the fruits of our
labor are becoming increasingly evident as we move toward the
second half of the year.
Here are some key highlights that fill me with
optimism:
- Continued refinement of product mix is positively impacting
gross margin – By strategically refining our product mix to include
higher-margin items, we've not only achieved gross profit for the
past two quarters (with reference to the pre-business combination
entity as to Q4 2023), but we believe we have also laid a solid
foundation for future bottom-line growth as we scale our
operations. The path to delivering net income for our shareholders
starts with earning a profit on the products we sell and then, as
we scale and cover our overhead, we expect bottom-line profits to
follow.
- Investments in R&D and marketing setting the stage for
sales expansion – At our core, Borealis is a food tech company
with research and development central to our strategy. Consistent
introduction of new, exciting flavors is at the heart of our
identity and it is equally important to support those efforts with
an aggressive marketing program to stimulate consumer demand for
Chef Woo ramen from their local retailers. Today's consumers are
also highly motivated by influencers and we have invested heavily
in that marketing channel, led by our brand ambassador and investor
Gordon Ramsay. As Gordon continues
to create enticing recipes with our ramen, we are confident that
our investments in marketing support and distribution of his
content will continue to drive sales growth.
- Sales to schools poised for significant sales ramp – In my
last letter I talked about "Woodles™", an innovative
product awarded the "Best Foodservice Initiative" at the 2023 World
Plant-based Innovation Awards. We created this product to be the
first whole-grain high-protein noodles served in U.S. schools. In
recent months we have been very busy preparing for the
back-to-school season coming up in August and September. We expect
school systems to start serving Woodles to their students this
coming fall and as we begin ramping up shipments of this product in
the third quarter, we expect to see a significant, positive impact
on our sales.
- Additional institutional sales opportunities – Our team is also
pursuing several other institutional opportunities and we expect to
see similar positive effects on our business. We are very
encouraged by the discussions we are having with major food
distributors, the military, correctional facilities, and
humanitarian food programs. In this regard, we are leveraging our
partnership with FSF (Food Systems for the Future), a
non-profit organization envisioning a malnutrition-free world,
headed by Borealis Board member Ambassador Ertharin Cousin, to
address global food security challenges in collaboration with
leading humanitarian food programs.
- Inclusion in the Feeding America® "Fight
Hunger. Spark Change." Program – Our involvement in this
exciting program bears repeating, thanks to its alignment with our
mission and ability to contribute to sales growth. The partnership
made our Chef Woo ramen available in approximately 600 Sam's
Clubs® across the U.S., representing a valuable new
set of retail endpoints where consumers can find our great-tasting
Chef Woo ramen.
In summary, while our first quarter achievements are certainly
commendable, they only scratch the surface of what's to come. The
groundwork we've laid and the investments we're making are poised
to yield even greater results in the quarters and years ahead. As
we remain steadfast in our mission to make a tangible difference in
the fight against malnutrition, I have full confidence that our
long-term success is not only achievable, but inevitable. Needless
to say, with the execution of our business development,
investments, industry partnerships and other strategic plans, we
expect that by the end of 2024 we will resolve the going concern
issue that was contained in reference to the financial statements
in our April 15, 2024 Form 8-K/A, our
FY 2023 Form 10-K, and our Q1 2024 Form 10-Q. We believe that the
going concern issue emerged following the near total redemption of
shares in connection with our recent business combination
transaction, causing, among other things, accumulated debts to the
professionals involved in facilitating the transaction, which, with
the support of our majority shareholders, has been addressed in
substantial part by shareholder debt. I look forward to reporting
on Borealis Foods' continued development and resolution of this
issue as we execute on our strategy.
In Good Health,
Reza
Reza Soltanzadeh
CEO
Borealis Foods Inc.
About Borealis
Borealis is an innovative food technology company with a mission
to address global food security challenges through its research and
development of tasty, highly nutritious and functional food
products that are both affordable and sustainable. The Company's
focus on affordability and sustainability reflects its commitment
to making a positive impact on both human life and the planet.
Through its wholly-owned subsidiary, Palmetto Gourmet Foods,
Borealis has created meals that are made with organic noodles, and
are vegan, vegetarian, Halal, Kosher, plant-based, egg and
dairy free, non-GMO, free of added MSG and TBHQ free. Borealis
distributes its food products throughout the United States, Canada, Mexico and recently began distributing its
products in Europe.
Forward Looking
Statements
Certain statements made in this release are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995,
including statements regarding the and future financial condition
and performance of Borealis, and the expected financial impacts of
the Business Combination (including future revenue and pro forma
enterprise value), markets, and expected future growth and market
opportunities. Forward-looking statements generally relate to
management's current expectations, hopes, beliefs, intentions,
strategies, plans, objections or projections about future events or
Borealis' future financial condition or operating performance. When
used in this press release, the words "estimates," "projected,"
"expect," "anticipate," "forecasts," "plans," "intend," "believe,"
"seek," "may," "will," "should," "future," "propose" and variations
of these words or similar expressions (or the negative versions of
such words or expressions) are intended to identify forward-looking
statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside Company's control, that could
cause actual results or outcomes to differ materially from those
discussed in the forward-looking statements. These risks,
uncertainties, assumptions and other important factors are detailed
in the Company's periodic and current reports filed with the
Securities and Exchange Commission, including the disclosures under
"Risk Factors" in the Company's Form 10-Q for the quarter ended
March 31, 2024 and its Form 8-K/A
filed with the Securities and Exchange Commission on April 15, 2024. As such, readers are
cautioned not to place undue reliance on any forward-looking
statements and readers should not rely on these forward-looking
statements as predictions of future events.
Forward-looking statements are based upon estimates and
assumptions that, while considered reasonable by management of
Borealis, are inherently uncertain. Factors that may cause actual
result to differ from current expectations include, but are not
limited to: financial and operating performance; changes to
existing applicable laws or regulations; the possibility that
Borealis or the combined company may be adversely affected by
economic, business, or competitive factors; Borealis' estimates of
revenue, expenses, operating costs and profitability; the evolution
of the markets in which Borealis competes and Borealis' ability to
enter new markets effectively; and the ability of Borealis to
implement its strategic initiatives and continue to innovate its
existing services.
Forward-looking statements speak only as of the date they are
made. Investors are cautioned not to put undue reliance on
forward-looking statements and Borealis assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by securities and other applicable
laws.
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SOURCE Borealis Foods, Inc.