Emblem Financing Fuels Real Good Food's Operational Turnaround and Growth

The Real Good Food Company, Inc. (NASDAQ: RGF), a leading health and wellness frozen and refrigerated foods company, has announced a significant financing agreement with Emblem Investments Fund I, LP. This new $60 million term loan, combined with the repayment of the existing PMC Financial Services Group, LLC financing, will provide the company with the necessary liquidity to drive its operational turnaround and support continued growth.

Unlocking Potential Through Strategic Financing

Expanding Manufacturing Capabilities

The new financing from Emblem will enable Real Good Foods to expand its manufacturing capabilities, a critical step in meeting the strong demand for its products. By investing in its supply chain, the company can improve service levels for its customers, laying the foundation for profitable long-term growth. This strategic move aligns with the company's focus on delivering high-quality, nutritious foods that cater to the growing health-conscious consumer market.

Driving Corporate Initiatives

In addition to the manufacturing expansion, the $52 million in proceeds from the Emblem financing will be used to fund several corporate initiatives. These initiatives are designed to position the company for long-term success, leveraging its strong brand recognition and customer loyalty. By investing in strategic projects, Real Good Foods can further solidify its position as a leader in the health and wellness frozen and refrigerated foods space.

Aligning Interests with Equity Stake

As part of the financing agreement, Emblem has acquired a 19.99% equity stake in Real Good Food LLC, the company's subsidiary. This equity stake, in the form of exchangeable Class C Units, demonstrates Emblem's confidence in the company's long-term potential and its commitment to aligning its interests with those of Real Good Foods. This strategic partnership will provide the company with additional resources and expertise to drive its growth initiatives.

Transformative Transactions

The CEO of Real Good Foods, Tim Zimmer, expressed his enthusiasm for these transformative transactions, 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 sentiment underscores the importance of the Emblem financing in supporting the company's operational turnaround and positioning it for future success.

Confidence in the Business

The successful completion of these financing agreements is a testament to the confidence that the company's lenders, including Emblem, have in Real Good Foods' business model and long-term potential. This vote of confidence from industry leaders further validates the company's strategy and its ability to navigate the challenges of the health and wellness food market.