Yerbaé has raised over $4 million in the “first tranche” of a new funding round backed by a variety of athletes and entertainers, the Arizona-based plant-based beverage brand announced yesterday.
In a LinkedIn post, Yerbaé co-founder and CEO Todd Gibson said the round includes investments from individuals from the NFL, MLB and the U.S. Soccer Federation. Reached by BevNET yesterday, Gibson said the identities of individuals in the round will be revealed next week after the company’s Q2 earnings report.
Those individuals will be heavily involved in the brand: In the press release, Yerbaé said its new Sports & Entertainment Board will be “comprised of prominent celebrities and sports stars” who will “play a pivotal role in guiding Yerbaé’s strategic decisions, brand positioning, marketing campaigns and product innovation.”
According to the company, the board committee will include a “soccer phenomena,” a CrossFit champion, “a globally acclaimed country music sensation” and “four revered football stars.”
Yerbaé previously announced that it had added brand ambassador and CrossFit Games champ Annie Thorisdotter to a board advisory group earlier this year.
“We are excited to embark on this incredible journey with our exceptional Sports & Entertainment Board members,” Gibson said in the release. “Their dedication to wellness and performance perfectly aligns with our brand’s values. By working together, we aim to create products and experiences that resonate with our consumers on a deeper level.”
Yerbaé went public in February on the Toronto Stock Exchange through a reverse triangular merger. At the time, Gibson told BevNET that one top benefit of going public is the ability to raise capital on a consistent basis and provide the business with more flexibility in its fundraising capabilities.
This latest financing is expected to support Yerbaé’s product innovation, distribution expansion and marketing efforts, the company said, as well as increased production, working capital and “general corporate purposes.”
The funding consisted of the issuance of over 2.2 million units made of one common share of the company and one common share purchase warrant at a price of $1.83 per unit. Each purchase warrant entitles the holder to one additional common share at a price of $2.15 for up to 24 months from the date of issuance.
In its Q1 2023 earnings report in May, Yerbaé reported net sales growth of 130% to $3.5 million in the quarter, with volume sales also up 130%.
On May 16, the company announced it had secured a $2.5 million new accounts receivable and inventory line of credit from Michigan-based bank Oxford Commercial Finance.