Fort Capital Partners is pleased to announce the closing of a $12.8 million private placement of common shares of Sustainable Produce Urban Delivery Inc. (“SPUD”). The offering was led by Montreal-based Walter Group, and included continued investment by several of the company’s largest institutional and individual investors. The proceeds of the offering will allow SPUD to build a new warehouse distribution facility in Vancouver, continue to develop Be Fresh Local Market™ stores in BC’s Lower Mainland, and provide working capital to support continued aggressive growth of the business in current markets.
With operations in Vancouver, Victoria, Calgary and Edmonton, SPUD is the largest pure-play online grocery company in Canada and is well positioned to participate in the ongoing digital migration of the $120 billion Canadian grocery market. Customers purchase products at www.spud.ca for direct-to-home delivery, or for pick up at the company’s “community distribution centres” (or CDC’s) operating under the Be Fresh and Organic Acres Market™ banners. SPUD’s CDC’s also provide customers the ability to purchase in-store products, including food and drink proprietary to SPUD.
The company’s high growth model utilizes a proprietary technology-enabled logistics solution to achieve industry-leading online grocery performance metrics. Vertically integrated secondary product lines such as Be Fresh, Juice Box, Soup Box, and Organic Acres allow SPUD to reduce food costs and waste, which is both environmentally responsible and financially attractive.
The SPUD, Be Fresh and Organic Acres banners represent local, organic and non-GMO products sourced from farmers, ranchers, fishermen/women, bakers, and artisans. SPUD partners with local producers that customers can trust; real people who have integrity, respect the environment, care about community, value sustainable farming practices, and believe in the humane treatment of animals.
“We are extremely pleased to have completed our financing, and to have found a strong new partner in Walter Group”, noted SPUD CEO Peter van Stolk, “Walter brings deep and relevant experience in the food industry and shares our transformative vision for online grocery.”
Fort Capital acted as agent to SPUD in the placement of the common shares.
About SPUD – Founded in 1997 in Vancouver, Sustainable Produce Urban Delivery Inc. has expanded into the largest online grocery company in Canada, employing over 400 people across all markets delivering fresh, local, organic produce and groceries. Committed to creating healthier communities, one choice at a time, SPUD’s goal is to use its connection to local and organic food to help improve the places where we live and work. From this vision, Be Fresh Local Market was proudly cultivated by SPUD, with the first store opening in Vancouver’s Kitsilano neighbourhood in 2015. Be Fresh currently serves five local communities in Vancouver. For more information, visit www.spud.ca or www.befresh.ca.
About Fort Capital – Fort Capital is an investment bank that works with public and private companies in Canada. The firm draws from collective capital markets experience to provide its clients with proven, accessible and independent investment banking advice and transaction execution. For more information, visit www.fortcapital.ca.