Nutritional Growth Solutions Ltd. (ASX:NGS), a leading global nutrition company known for its clinically proven products that support growth and development in children, is thrilled to announce the successful securing of A$400,000 in subscriptions for Convertible Notes. This strategic financial injection is set to provide the company with the necessary capital to enhance sales growth, expand sales channels, and continue its journey towards achieving cash flow positivity.
The funding round was led by TAKE Global Group, a prominent strategic advisory firm in the nutrition industry, co-founded by industry veterans Kristy Carr and Dennis Lin. This partnership underscores a shared vision for NGS's potential to scale and accelerate growth, leveraging TAKE Global's extensive network and expertise in the U.S. market.
Strategic Financial Flexibility through Convertible Notes
The Convertible Notes carry an interest rate of 12% per annum, with a unique feature allowing conversion into fully paid shares at a 20% discount during the next Capital Raise, over a term of three years. This structure not only provides NGS with immediate working capital but also aligns with long-term growth strategies and shareholder value enhancement.
A Partnership Rooted in Growth and Expansion
Since December 2023, NGS has been closely collaborating with TAKE Global to explore various strategic opportunities for scaling the business. The engagement has fostered a strong confidence in NGS's business model and growth trajectory, culminating in this significant investment.
Utilizing Capital for Accelerated Growth
The capital raised from the Convertible Notes will be strategically deployed towards driving profitable growth, exploring sales channel expansion, and assessing inorganic growth opportunities, including potential acquisitions. These initiatives are aimed at complementing and enhancing NGS's existing business model, with a focus on becoming a leader in the global nutrition space.
NGS CEO, Stephen Turner, commented: “We welcome this funding support from TAKE Global and other existing supporters. The additional working capital will be immediately applied to continue to drive growth in sales revenue and gross profit contribution, as we move quickly to being in positive cash-flow. We are excited to have secured investment from a group with significant experience in industry that shares our vision, provides considerable validation of our business model.
TAKE Global Managing Partner, Kristy Carr, commented: “Over the past few months and following a strategic review of the Company, we have gained significant confidence in the NGS team and their ability to execute a vision of delivering a hyper growth nutritional business in the USA, Australia, and Asia. We are very pleased for TAKE Global to make its first investment in this sector with NGS, and we look forward to working together with the team in continuing to execute on the Company’s strategic vision.”
Nutritional Growth Solutions is a global nutritional health company focused on the well-being of children. NGS develops, produces and sells clinically tested nutritional supplement formulae for children following 20 years of medical research into pediatric nutrition at Schneider Children’s Medical Centre, Israel’s largest pediatric hospital. The nutritional supplements market has experienced tremendous growth in recent years, but most attention has been focused on adult users and children under three years of age. The three to twelve-year-old consumers represent a larger market opportunity and NGS is highly differentiated from its competitors with clinically tested products and an expanding product portfolio to capture this market opportunity.