Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has successfully completed the sale of its subsidiary, Holy Crap Foods, for $1,000,000 CAD in cash, along with customary working capital adjustments. This strategic move converts a non-core asset into cash that will be directed towards the company’s restaurant growth strategy.
Sean Black, Chief Executive Officer of Happy Belly, stated, "With the sale of Holy Crap Foods now completed, we've converted a non-core asset into non-dilutive cash that will be immediately directed into our core restaurant growth strategy. The $1 million of proceeds gives us added flexibility to fund near-term store openings and franchise expansion. Our focus remains on scaling our QSR platform where unit economics and returns are strongest across brands like Rosie's Burgers, Heal Wellness, Via Cibo, iQ Food Co., and Yolks Breakfast as we build momentum through 2026."
According to Black, the consideration received reflects an estimated 10x EBITDA sale multiple for the Holy Crap business. The company emphasizes a disciplined approach in capital allocation, prioritizing return on invested capital (ROIC). This closing reinforces Happy Belly’s strategy to focus on QSR-led growth and franchising.
Transaction Summary
The sale entails the complete divestment of Holy Crap Foods Inc., which is now finalized. The working capital adjustments are expected to be completed within 60 days post-closing and will be due to Happy Belly in the form of an asset-secured, first-position promissory note, payable within 12 months.
Appointment of New Board Member
Additionally, the Company has appointed Matt Appleby to its Board of Directors. Appleby brings a wealth of experience as a corporate lawyer specializing in public markets, mergers and acquisitions, and corporate governance.
He has previously held senior legal and executive roles at notable firms, enhancing his capability to guide companies through growth and regulatory challenges. Appleby holds degrees from Wilfrid Laurier University and Michigan State University College of Law, and is licensed to practice in Ontario and New York.
With this transition, Kevin Cole has resigned from the Board to make way for Appleby, and the company expresses gratitude for Cole's contributions during his tenure.
For franchising inquiries, please visit www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.
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