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Nepra Foods Announces $1.2MM Equipment Financing from Farnam Street Financial

January 25, 2022, 07:09 AM

Nepra Foods Inc., creator of nutritious plant-based and allergen-free food, announces it has entered into a lease agreement with Farnam Street Financial, Inc. pursuant to which Farnam Street will lease to the company food-processing equipment costing a total $1.2 million for a period of 24 months.

Farnam Street will retain ownership of the lease for the entire lease term. In the event that Nepra receives a bona fide offer from a third party to lease equipment to the company, Farnam Street will have the right of first refusal to lease the equipment which is the subject of the third party offer to Nepra on the same terms and conditions of the third-party offer.

Nepra plans to lease equipment to expand production of its high-protein flours and blends, PROPASTA, THP and other existing ingredients to support the company's goal of doubling ingredient sales.

  • Hemp Heart flour, Nepra's proprietary 50 percent protein flour, is currently at max capacity; additional production equipment allows Nepra to double its production to just over 500,000 pounds annually.
  • Plant Protein Texturizer allows Nepra to produce 300 pounds/hour of THP in-house (roughly 800,000 pounds/year) adding up to $3.5 million in potential revenue,
  • Blending and Packaging equipment, used for wholesale ingredient sales, will bring the entire ingredient production process in-house and expand the capacity of custom blending.
  • Additional equipment will produce the individual components such as pasta and plant-based meat analogues that make up the PROPASTA frozen consumer meals pilot production line at the Colorado facility. The frozen meal pilot line allows the company to quickly launch the products in select regional markets.
  • Enables two additional lines of revenue: CPG and Institutional ingredient sales
  • Expands the research facilities giving Nepra more capabilities for advanced product development
  • Expands storage capacity for raw materials.

"We're very pleased to embark on this new business relationship with Farnam Street. Leasing this new equipment will allow us to continually upgrade to the latest machine technology for maximum production output while freeing up cash resources for corporate development initiatives, including R&D," said Nepra CEO David Wood. "The utilization of less dilutive debt and leasing finance instruments is a key component of our overall corporate strategy."

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