Shares of Real Good Food Company, Inc. (RGF) are soaring in extended trading on Thursday, following the company’s announcement of a major debt refinancing transaction. The deal, which involves PMC Financial Services and Emblem Investment Fund, brings in a fresh $60 million term loan.
Real Good Foods plans to strategically allocate these funds. $8 million will be used to repay existing financing from PMC, while the remaining $52 million will cover transaction fees and general corporate purposes. This strategic move is expected to fuel the expansion of the company’s manufacturing capabilities, driving several corporate initiatives aimed at positioning the company for sustainable and profitable long-term growth.
As part of the agreement, Emblem Investment Fund received 19.99% of Real Good Food’s outstanding equity in the form of Class C Units of its subsidiary, Real Good Food LLC. These units are exchangeable into the company’s common shares.
Tim Zimmer, CEO of Real Good Foods, expressed his enthusiasm for the transaction, stating, “We are thrilled to announce these transformational transactions, which provide us with significant liquidity and therefore the capability to make critical investments in our supply chain and strategic initiatives. This will better position our supply chain to meet strong demand for our products and improve service for our customers, which sets the foundation for profitable long-term growth.”
The announcement has sparked significant trading activity, with over 7.6 million shares changing hands during Thursday’s regular session. Following the news, RGF shares surged a remarkable 66.76% in after-hours trading, closing at 62 cents at the time of publication.
