Coho Collective Kitchens Inc., a creator of innovative ghost kitchen solutions announces the closing of a successful oversubscribed non brokered private placement for aggregate gross proceeds of $3 million.
Coho Collective includes Coho Commissary kitchens and the Coho Cafe, which offer food entrepreneurs kitchen memberships that are flexible and allow them to grow their business, while also showcasing their products with other members. Coho Collective members include a number of social enterprises that showcase culturally diverse, locally sourced, and often plant-based and low-waste foods and beverages. For instance, they featured a Support Local Gift Box to commemorate International Women’s Day this year featuring women-led enterprises from within their community, as well as a Veganuary box of plant-based products crafted by their members. They provide their members not only kitchen space for their production, but also training in managing their business.
With a 98% customer retention rate and a waitlist of over 120 companies for our kitchens, the Company has embarked on a path to substantially scale its operations. With the global pandemic shifting consumer habits towards increased use of delivery applications, Coho Collective has created a restaurant format that helps business owners adapt to this new trend without sacrificing profitability. To fund the global expansion plans for Coho Collective, the Company intends to use half of the proceeds from the Offering to expand to 5 new locations, including expansion through Vancouver, the Sunshine Coast and Victoria. These new locations will allow Coho Collective to gain traction as a market leader on the estimated 1 trillion-dollar ghost kitchen opportunity within the next ten years.
The remaining funds will be used for two key purposes, including the hiring of key talent for corporate expansion and the potential acquisition of relevant companies within the market.
CEO Andrew Barnes stated: “I am thrilled by the sheer amount of support we have received from the community of investors as we look to scale the company to more locations and expand our consumer base throughout the province. I have seen the potential for innovation in the restaurant industry for a long time and the potential that the ghost kitchen model specifically has in solving the many problems which face small and medium food and beverage companies, particularly as consumer dining habits have shifted throughout the pandemic. We are excited to be able to continue to expand and see what the next step in our journey will be.”
Additionally, Coho Collective is pleased to announce that Mitchell Scott, CEO of The Very Good Company Inc. (“VERY“) will be joining the Board of Directors to help guide the growth of the company; Coho has worked with VERY since the Company’s inception and it is expected that this next step will help further leverage the expertise and experience of the VERY team. According to Bloomberg terminal data, VGF was the top performing IPO, globally, in 2020 and has undergone a rapid period of expansion with Mitchell as CEO. His experience building and leading a rapidly growing company will become an asset to Coho as it aims for its own exponential growth over the course of this year.
About Coho Collective Kitchens Inc.
Coho Collective Kitchens is a recognized industry leader and next-generation ghost kitchen innovator bringing turnkey solutions to the world. Coho Kitchens in the business of cultivating a community in support of food entrepreneurs to grow their businesses through access to shared facilities, distribution channels, shared resourcing, and industry expertise.