#Canada #Vancouver #Private Placement #Eshbal Functional Food #gluten-free market

Eshbal Functional Food Inc. Completes First Closing of Private Placement

Eshbal Functional Food Inc. (TSXV: ESBL), a pioneer in the gluten-free food sector, has announced the successful completion of its initial closing for a non-brokered private placement. This strategic move marks a significant step towards enhancing the company’s growth within the gluten-free industry, which aligns with their broader roll-up strategy.

On February 11, 2026, Eshbal revealed that it had closed an initial tranche of its private placement, offering a total of 4,245,117 units. This funding initiative has netted gross proceeds of approximately $721,670. Each unit comprises one common share of the company and one full common share purchase warrant. Holders of the warrants will have the opportunity to acquire additional common shares at an exercise price of $0.30 until February 10, 2028.

In accordance with applicable securities regulations, all securities issued during this offering are subject to resale restrictions until June 11, 2026. The funds raised will predominantly be channelled into identified acquisition opportunities, which are crucial to Eshbal's articulated growth strategy within the artisanal gluten-free market. Furthermore, there will be allocations toward ongoing product developments, crucial projects, and general working capital.

Tomer Bar Meir, the CEO of Eshbal, expressed optimism regarding the future, stating, "We are currently in talks with several companies to support our roll-up strategy in the artisanal gluten-free sector. The financial resources garnered from this private placement will facilitate the acceleration of this approach, enhancing the manufacturing efficiencies needed to cater to mainstream grocers."

The company’s strategy is focused on consolidating smaller brands within the gluten-free segment to create a robust platform capable of meeting the demands of large-scale retailers. This is a promising venture, especially given the increasing consumer demand for gluten-free products, which have been significantly rising in recent years.

Eshbal's commitment to innovation is evident through their recent collaboration with Dare 2 Be Different Foods, potentially allowing their products to reach Walmart and over 300 other retail locations in the Northeast USA. The collaboration aims not only to expand Eshbal's distribution network but also to solidify its presence in the market.

As the gluten-free landscape continues to evolve, Eshbal Functional Food Inc. is strategically positioned to capitalize on the opportunities presented by this growing sector. The completion of this private placement serves as a testament to Eshbal's dedication to scaling its operations effectively and efficiently to meet customer needs.

In summary, Eshbal's first closing of the private placement is not just a financial milestone; it reflects the company's ambitions and strategic direction within the gluten-free market. As they move forward, stakeholders and investors will be keenly observing the company’s next steps and developments in this dynamic and competitive sector.

For more details about their offerings and initiatives, visit Eshbal's official website.