Overview
According to the Government of Canada, the blue economy is driven by sustainable ocean resources and accounts for approximately C$30 billion per year. A significant factor in the blue economy is the preservation of aquatic life –– specifically, seafood. As a result, seafood alternatives are projected to reach a market size of US$1.6 billion in the next decade at a compound annual growth rate (CAGR) of 28 percent. With this in mind, companies with models that support blue economies, and offer seafood protein alternatives, will likely be of significant interest to investors seeking upside potential.
Billy Goat Brands (
CSE:GOAT) is a venture capital platform focused on building a diversified portfolio of high potential, expansion-stage food and nutraceutical brands in the blue economy. The company is dedicated to investing in, and helping grow, exciting and innovative companies with environmental, social, and governance (ESG) initiatives that address climate change, human wellness and the global demand for food security. Billy Goat Brands’ portfolio offers investors early exposure to functional foods, food technology, and fermented food brands that are fast-growing.
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The company differentiates itself from a traditional investor as a partner that provides strategic assistance, network connections, and support to its portfolio companies. This partnership-driven relationship facilitates scale and faster growth for its portfolio companies, expanding their market opportunities and increasing their product lines. All of Billy Goat Brand’s portfolio companies have been more than satisfied with the assistance that Billy Goat Brands has provided to them.
Billy Goat Brands’ current portfolio consists of Sophie’s Kitchen, KOLD, The Vegetarian Butcher, and Evanesce Packaging. Sophie’s Kitchen, the company’s largest asset, focuses on delivering delicious and nutritious plant-based seafood alternatives that support a blue economy. As of May 5, 2022, Billy Goat Brands increased its investment in Sophie’s Kitchen, now owning 35 percent of the company. CEO Tony Harris credits this to the progress the company made over the past year and its ongoing commitment to innovative food products.
KOLD produces enhanced cold brew coffee that is made from high-quality coffee and functional mushrooms. The Vegetarian Butcher offers gluten-free and GMO-free plant-based deli meat alternative food products. Lastly, Evanesce Packaging creates truly compostable, organic, sustainable, and effective disposable packaging and utensil alternatives to non-compostable and inorganic options.
In October 2021, Billy Goat Brands signed a Letter of Intent to purchase an equity stake with Cascadia Seaweed. a vertically integrated company growing to become the largest provider of ultra-premium ocean cultivated seaweed in North America.
The company’s diversified portfolio is 40 percent in functional foods, 45 percent in plant-based proteins, and 15 percent in food technology. The company intends to have a platform built around a core group of five to 10 investments. This strategy will enable the company to better focus on supporting and accelerating its portfolio companies’ growth and market expansion.
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Each company that is currently in Billy Goat Brands’ portfolio is expected to produce a more than 50 percent, compound annual growth rate (CAGR) in each of the next three years. Billy Goat Brands plans to generate returns on its investments in several ways, including go-public transactions, mergers and acquisitions, and other liquidity events of its portfolio companies or projects.
The company is led by an experienced management team that is well-versed in the nuances of the public markets, venture capital, mergers and acquisitions, strategy, corporate governance, and operations. The company’s management team has executed over $5 billion of various debt and equity transactions. The team has also established highly successful brand channels, ideas and platforms for brands like Best Buy, Telus, and Tourism BC.
The company’s pre-money valuation is currently estimated to be an impressive C$44 million. Billy Goat Brands has 96,714,335 common shares issued and outstanding, 41,948,596 warrants and 4,425,000 stock options for a total of 143,087,931 fully diluted shares outstanding. If fully exercised, warrant proceeds would total approximately C$12.5 million while option proceeds would total C$1.2 million.
Currently, Billy Goat Brands has identified more than 200 potential portfolio companies and it has entered into more than 40 advanced discussions. Going forward, the company will be entering due diligence with more than 20 companies to establish fair negotiations, including two term sheets out for review by third parties.
Company Highlights
- Billy Goat Brands (CSE:GOAT) is a venture capital platform focused on building a diversified portfolio of high potential, expansion-stage food and nutraceutical brands in the blue economy, while maintaining ESG initiatives.
- The company differentiates itself from a traditional investor as a partner that provides strategic assistance, network connections and support to its portfolio companies for faster scale and growth. All of Billy Goat Brand’s portfolio companies have been more than satisfied with the assistance that Billy Goat Brands has provided to them.
- Billy Goat Brands’ current portfolio consists of Sophie’s Kitchen, KOLD, The Vegetarian Butcher, and Evanesce Packaging. Sophie’s Kitchen, the company’s largest asset, focuses on delivering delicious and nutritious plant-based seafood alternatives that support a blue economy.
- GOAT to invest in Cascadia Seaweed, a vertically integrated company growing to become the largest provider of ultra-premium ocean cultivated seaweed in North America.
- Each company that is currently in Billy Goat Brands’ portfolio is expected to produce a more than 50 percent CAGR in each of the next three years.
- On May 5, 2022, the company increased its share in Sophie’s Kitchen to 35 percent, with CEO Tony Harris crediting the decision to the progress Sophie's Kitchen made over the 12 months, and its ongoing commitment to innovative food products.
- The company is led by an experienced management team that is well-versed in the nuances of the public markets, venture capital, mergers and acquisitions, strategy, corporate governance, and operations.
Key Products
Sophie's Kitchen
Billy Goat Brands has the right to acquire up to 46 percent interest in its key brand, which is Sophie’s Kitchen. The interest agreement is contingent upon funding and conversion of an existing credit facility, as well as the exercise of subscription rights granted to Billy Goat Brands. Billy Goat Brands has also been granted share purchase warrants in Sophie’s Kitchen. The company will be providing capital markets advisory services to Sophie’s Kitchen to go public on the North American stock exchange. Sophie’s Kitchen is Billy Goat Brands’ largest asset to date.
Sophie’s Kitchen offers delicious and nutritious plant-based seafood alternatives that have zero mercury content, no fishy smell, no concern of microplastics, and do not negatively impact the ocean. The company is a manufacturer and distributor that creates both frozen and shelf-stable products. Sophie’s Kitchen’s products include Plant-Based Toona with Sea Salt, Plant-Based Toona with Black Pepper, Breaded Vegan Shrimp, Vegan Fish Fillet, Vegan Smoked Salmon, and Vegan Crab Cakes. Sophie’s Kitchen has experienced rapid revenue growth.
Sophie’s Kitchen has entered into several strategic partnerships to support its aggressive growth, including a manufacturing and distributor deal. The company’s products are available at various retailers like Amazon.com, Wegmans, Sprouts Farmers Market, Stop & Shop, Walmart and Whole Foods Market. The company has some of the best national distribution partners, including United Natural Foods, KeHE and Sysco. Going forward, the company plans to expand its product offerings to include a plant-based chicken alternative.
Sophie’s Kitchens has been featured by PETA, Forbes, Yahoo! Finance, Veg World, Well + Good, East Bay Express, Bloomberg, VegOut, VegNews, The Beet, and Vegconomist. The company has also won the PETA Vegan Food Award and the title of “Best Plant Based Seafood” from Goop’s “A Guide to the Best Plant Based Meats.”
Based on this success, Billy Goat Brands acquired additional stake in the company. As of May 5, 2022, the company owns 5 percent of the company. CEO Tony Harris credits this to the progress the company made over the past year and its ongoing commitment to innovative food products.
KOLD
Billy Goat Brands owns 100 percent of KOLD. Billy Goat Brands will be providing KOLD with capital, marketing, and strategic partnerships. KOLD is a manufacturer and distributor that creates enhanced cold brew coffee that is made from high-quality coffee and functional mushrooms. KOLD offers organic Chaga and Lion’s Mane mushroom-infused cold brew coffee products that feature slow-roasted chicory for digestive health. Each serving of KOLD coffee contains 160 mg of mushrooms. KOLD products will also be packaged using reusable glass bottles through a partnership with Terracycle’s LOOP program. The company’s market strategy is targeting a share of the nearly US$23 billion functional mushroom market.
KOLD has partnered with Brew N Bottle as a key product formulator. Brew N Bottle has developed and produced products for several Fortune 500 brands, including Starbucks, Whole Foods Market, Hershey’s, Folgers, and Seattle’s Best. KOLD received the first preorder of its product, via its subsidiary FunGuys Beverages, proving the demand for coffee and functional mushrooms in the US$655 million market for cold-brew coffee. Going forward, the company plans to expand first to the US and then globally.
The Vegetarian Butcher
Billy Goat Brands owns a 12.4 percent stake in The Vegetarian Butcher. The Vegetarian Butcher creates gluten-free and GMO-free plant-based meat alternative food products. The company specializes in fresh vegan deli meats that are prepared in-house, frozen packaged foods and dry and canned ingredients. The Vegetarian Butcher also sells white-label vegan meat substitutes and catering services.
The Vegetarian Butcher has two primary brick-and-mortar locations in British Columbia. The company also has an e-commerce platform to sell its products. Both stores successfully became cash flow positive within two months of opening. The company has started the permitting process to open a third location in White Rock, BC.
The Vegetarian Butcher is currently exploring potential franchising and proprietary manufacturing. The company has a goal to begin manufacturing in-house to reduce costs and improve margins. The Vegetarian Butcher also hopes to expand nationwide over the next three years with 36 locations, including 10 or more stores in the Greater Toronto Area.
Evanesce Sustainable Packaging
Billy Goat Brands owns a minority stake in Evanesce Packaging, a company offering truly compostable, organic, and sustainable disposable packaging and utensil alternatives to non-compostable and inorganic options. The company’s packaging is made from plant-based by-products and does not compromise strength, insulation, nesting capabilities, or cost competitiveness. The company’s packaging products decompose in under 90 days and have a shelf life of over two years. Evanesce Packaging’s products include takeout containers and compostable straws that don’t disintegrate like cardboard straws typically do. Evanesce Packaging’s innovative technology has three patents issued, one patent pending, and 17 claims.
Evanesce Packaging plans to target several markets, including grocers, meat and poultry packers, fast food chains, and produce packers. Billy Goat Brands recently increased its ownership in the company, exercising its incentive warrants to almost double the previous stake. Evanesce is currently in talks with Syco, Sobeys, Fiera Foods, and Oppy. The company also plans to pursue leads in its target market in the first half of 2022. During 2022, it’s also launching a new set of starch products including trays, cups, and containers, all made of moulded starch.
Cascadia Seaweed
Based in Sidney, British Columbia, Cascadia Seaweed cultivates seaweed along the coast of BC in Canada. Founded in 2019, it produced seed, built farms, planted, grew, and harvested from two hectares of demonstration farms in the same year, Cascadia Seaweed has a vision to have at least 500 hectares under cultivation by 2025.
Under the terms of the Letter of Intent, Billy Goat Brands may provide capital advisory services to Cascadia Seaweed in exchange for an equity stake in the company.
Management Team
Tony Harris - Chairman and CEO
Tony Harris has over 20 years of experience as an investor and entrepreneur. Harris has earned a reputation for leading high-performance teams. Harris is the president of the Tony Harris Group and a partner at Harris Auto Group. As an entrepreneur and investor, Harris has extensive experience in corporate banking and finance. He is an award-winning automotive dealer and real estate developer. A graduate of the University of Western Ontario, Harris also completed executive education in leadership and entrepreneurship from Babson College. Harris is a family man, a known community builder, and a philanthropist who serves as chair of the Nanaimo and District Hospital Foundation.
Kerry Biggs - CFO and Director
Kerry Biggs is the CFO and director of Billy Goat Brands. Biggs has over 23 years of finance experience, most recently serving as the CFO of two publicly-traded entities within the Canadian cannabis sector. In addition, Biggs served as vice president and treasurer at Lululemon Athletica, where he oversaw capital markets, liquidity, treasury, and insurance activities. Biggs was also the vice president of finance at GCT Global Container Terminals, which is a company wholly owned by the Ontario Teachers’ Pension Plan. He has held various senior finance roles at Finning International and Enbridge. Biggs holds a master's of business education from the Richard Ivey School of Business and a bachelor’s of arts degree in political science from the University of Victoria, in addition to being a designated chartered professional accountant.
Paul Marr - SVP of Marketing
Paul Marr is the SVP of Marketing at Billy Goat Brands. Marr is an award-winning executive creative director. Marr is currently the principal director at KLOD and he is the head of Marcom creative for EA Sports. At EA Sports, Marr leads a team of strategists, designers, copywriters and creative directors. Before EA, Marr was a director at Cossette which is Canada’s leading creative agency. At Cossette, he helped establish brand channels, ideas, and platforms for brands like Best Buy, Telus and Tourism BC.
David Jackson - SVP of Branding
David Jackson is the senior vice president of branding at Billy Goat Brands. Jackson is a highly-regarded marketing leader. Jackson is currently the principal director at KOLD and vice president of marketing for EA Sports. At EA Sports, Jackson is responsible for over US$2 billion of revenue globally across the FIFA franchise. Before EA, Jackson worked in omnichannel advertising for the public and private sector with Saatchi & Saatchi in London, UK. He has also held a position in sponsorship strategy and activation with Barclays Bank.
Jan Urata - Corporate Secretary
Jan Urata is the founder and president of Take It Public Services. Urata founded Take It Public Services in 2011. Take It Public Services is a regulatory and corporate compliance support service for top-tier junior issuers in a wide range of industries, including biotech, mining, venture capital, and oil and gas. Urata brings over 20 years of industry experience and is well-versed in taking corporate entities from the initial seed capital stage to publicly-listed companies.
Todd Buchanan - Chairman and Investment Committee
Todd Buchanan is chairman of Billy Goat Brands and has over 20 years of experience working with Fortune 500 public and private companies. Buchanan advised on the creation and implementation of business process management methods and technology, proving him a strong consensus builder and negotiator. Buchanan is focused on assisting founders and families operating early-stage companies from start-up through proof of concept to hyper-growth. He has worked with various companies during which he offered his multifaceted experience. Buchanan has held various senior executive positions at several companies including International Forest Products, SiCam Systems and its clients, Nexii Building Solutions, Luvo, and LYFE Kitchen, and Equifaira Partners and its clients. He currently serves on the board, as an officer and in advisory roles with multiple companies, a mutual fund trust and a not-for-profit organization.
Asghar Khan - Investment Committee
Asghar Khan is part of the investment committee at Billy Goat Brands. Khan has extensive experience working with public and private enterprises, having driven shareholder value as well as long-term growth. Khan had served as the regional head of strategy and business development for PepsiCo, where he drove a multi-billion dollar portfolio in 14 countries across the Pacific Asia, with a primary focus on development of strategy and mergers and acquisitions. Before PepsiCo, Khan held senior finance and planning positions at Rogers Communications and PricewaterhouseCoopers, also serving on the boards of various MNCs in the Asia Pacific. Khan is a member of CIMA Australia, holding a bachelor’s degree from Albright College, a master’s of business administration from Lerner School of Business at the University of Delaware, and a master’s degree in finance from The Wharton School of Business at the University of Pennsylvania.
Lyndsay Hamelin - Director
Lyndsay Hamelin brings over 15 years of experience in corporate and securities law. During her career, she has focused on securities and corporate finance. Hamelin assists with managing and orchestrating public company requirements with a focus on the CSE, TSXV, and TSX stock exchanges, as well as listings on the OTC Markets. After starting her career in Vancouver, Canada, Hamelin advanced to a senior position working with a top-tier law firm in London, England, where she assisted in completing a corporate reorganization. Hamelin has returned to Canada where she uses her international expertise to help clients navigate complex corporate compliance matters, financings, and IPO preparations for the Canadian markets.
Natasha Raey - Director
Natasha Raey is an entrepreneur and philanthropist with over 15 years of operational and project management experience. Raey’s primary sector focuses include healthcare, cannabis, consumer discretionary, and women’s empowerment. Raey is the founder of Bloomelix and the CEO of Skye Cannabis. She has had experience developing and executing research projects, development action plans, and evaluation frameworks for many community development and health-focused projects. Raey is a partner at Cadence Health Center, where she oversees the development and execution of the multi-disciplinary health center and compounding pharmacy. She is an avid philanthropist with a focus on healthcare and women’s empowerment. Raey is the founder of SheTalks Global which is a platform for women to share their stories of empowerment that’s been recognized by CNN International. Currently, Raey sits on the board of Myconic Capital . She holds an honors degree in molecular biology and biochemistry from Simon Fraser University and has a master’s in health administration from the University of British Columbia.
Lawrence Hay - Director
Lawrence Hay is an officer and director of a variety of private and public companies and has extensive experience structuring and financing companies within the clean energy and ESG industries.
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