BranchOut Food Inc. (NASDAQ:BOF), a leading food technology company specializing in its patented GentleDry™ dehydrated snacks and ingredients, announces the execution of a strategic agreement with Kaufman Kapital LLC, resulting in a $1 million cash infusion through the early exercise of existing warrants. The agreement also includes amendments to existing financing terms that strengthen BranchOut's balance sheet, allow for debt repayment and extend key debt maturities.
Under the terms of the agreement, Kaufman Kapital will exercise in full an existing warrant to purchase 1,000,000 shares of BranchOut's common stock, providing the Company with $1,000,000 in cash proceeds no later than June 16, 2025.
In addition, the parties agreed to the following amendments:
- Extension of the maturity date of the $3.4 million Senior Secured Convertible Promissory Note from December 31, 2025 to December 31, 2026.
- Extension of the maturity date on the remaining $875,000 balance of the original $1.2 million Kaufman Senior Secured Promissory Note to December 31, 2025.
- Extension of the expiration date of a separate warrant to purchase 500,000 shares to December 31, 2026
"This Agreement reflects the strong confidence Kaufman Kapital has in our long-term growth strategy and operational execution," said Eric Healy, CEO of BranchOut Food. "The warrant exercise provides us with additional capital, while the note extensions improve our financial flexibility and strengthen our balance sheet."
Kaufman Kapital's decision to exercise its warrant ahead of schedule and extend key financing terms reflects continued confidence in BranchOut's trajectory. "We've been closely following BranchOut's progress, and the execution we're seeing across both operations and commercial growth is outstanding," said a spokesperson for Kaufman Kapital. "Our early exercise of the warrant reflects our strong confidence in the team, the business model, and the long-term opportunity. We're bullish on where BranchOut is headed and proud to support their continued momentum."
The $1 million in proceeds from the warrant exercise will be used to pay down outstanding debt obligations as part of BranchOut's broader initiative to eliminate all current liability notes payable by the end of 2025. This strategic use of capital reflects the Company's commitment to strengthening its balance sheet and positioning itself for sustained growth.