BranchOut Food Inc. priced a $2.5 million institutional investment on November 13, 2025, selling 1,034,600 shares of common stock to Bard Associates, Inc. Alexander Capital L.P. served as the sole bookrunner.
The infusion will lift the company’s working‑capital reserves from a cash balance of $812,007 and working capital of $2.12 million as of September 30, 2025, to a stronger liquidity position that can support the company’s expansion plans. The transaction also reduces the accumulated deficit of $20 million and helps address the substantial doubt about the company’s ability to continue as a going‑concern that was disclosed in the Q3 2025 earnings report.
BranchOut plans to use the capital to accelerate the construction of a fourth large‑scale production line at its Peru facility, which is expected to be operational early in 2026. The company is also shifting to an inventory‑based production strategy to better meet demand in its growing retail and ingredient channels. The GentleDry technology, which preserves more nutrients and flavor than conventional drying methods, remains a key differentiator that investors view as a growth engine.
CEO Eric Healy said the financing validates the company’s momentum, noting that October was the best month in the company’s history with record revenue of $1.7 million, equivalent to a $20 million annualized run rate. He added that the capital will position BranchOut to scale production and execution across its rapidly expanding retail and ingredient channels.
Investors reacted cautiously to the announcement, citing the dilutive effect of the equity offering and the ongoing liquidity challenges highlighted by the going‑concern warning. The company’s recent Q3 2025 results showed revenue of $3.22 million, up 93 % from $2.18 million a year earlier, but the company still reported a net loss of $4.09 million and a cash balance of $812,007.
The capital raise is a critical step toward moving BranchOut toward positive operating income and a debt‑free balance sheet by year‑end. The company’s guidance for the next quarter remains unchanged, but management signals confidence that the additional working capital will support continued revenue growth and operational scaling.
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