Borealis Foods, a Canadian food tech company, was established in 2019 with a stated mission to tackle global food insecurity through innovative, nutritious food products.
The company launched its Chef Woo ramen line in 2020, aiming to provide a high-protein vegan alternative to packaged ramen at an accessible price point. Chef Woo, marketed as “the world’s first vegan ramen noodle brand,” features traditional ramen flavors such as Roasted Chicken, Braised Beef, and Thai Lemongrass. The company’s products are available in over 15,000 retail locations across the US and Canada, including Walmart, Aldi, and Amazon.
In addition to Chef Woo, Borealis Foods’ portfolio includes Ramen Express, another plant-based noodle brand, and options tailored for foodservice. The company is also expanding its non-retail efforts, such as providing meals to programs like Feeding America.
Gordon Ramsay joins Borealis
In 2023, renowned chef Gordon Ramsay joined Borealis Foods as an investor and strategic advisor. Ramsay’s involvement includes serving as a shareholder, advisor, and brand ambassador. “With the current cost-of-living crisis on everyone’s minds and rising food prices being a worldwide problem, now more than ever, households across America face the very real issue of food insecurity,” stated Ramsay. “I’ve already got some big ideas, and I’m really looking forward to collaborating with the Borealis Foods team on their Chef Woo products in the coming months.”
Public listing
Borealis Foods went public in February 2024, trading on the Nasdaq under the symbol “BRLS” following a business combination with Oxus Acquisition Corp. CEO Reza Soltanzadeh remarked, “Borealis’ debut on the Nasdaq is an important step in our evolution as we pursue our mission of helping solve the problem of global food nutrition. […] Our commitment to our mission is unwavering; at the same time, we are enthusiastic about our growth outlook, stemming from our unique product offering and vast opportunities in retail and foodservice.”
“Our commitment to our mission is unwavering“
In April, Soltanzadeh shared a corporate update highlighting the company’s achievements in 2023, including a $50 million funding boost and the launch of “WoodlesTM,” awarded “Best Foodservice Initiative” by the 2023 World Plant-based Innovation Awards. Borealis expanded its retail distribution across North America and e-commerce channels, notably increasing sales on Amazon nearly eightfold.
Soltanzadeh spoke on the company’s mission in a press release, stating, “Together, with steadfast resolve and collective effort, we’re poised to continue our journey of making a tangible difference in the fight against malnutrition while providing positive results for our shareholders.”
Stock performance
Despite the successful public listing, Borealis Foods faced financial challenges. Last month, the company announced results for the first quarter of 2024, reporting earnings per share of -49 cents and revenue of $7.9 million. Following this announcement, shares fell sharply in premarket trading.
“The current valuation of our publicly traded shares does not accurately reflect the inherent strength and opportunity of our business”
According to Market Watch, Borealis stated it requires additional capital to meet funding needs through March 31, 2025, but has adjusted its expansion plans to reduce these requirements. The company reported a net loss with negative cash flows from operations in the first quarter but anticipates lower operating costs for the rest of 2024 after incurring $1.5 million in transaction expenses and $1.3 million in employee stock compensation expenses.
Stock buyback program
In response to these financial difficulties, Borealis Foods announced today that its Board of Directors authorized a stock buyback program, which will expire on May 30, 2025. The company may purchase up to $3.0 million of its common shares in open market transactions, privately negotiated deals, block trades, or through trading plans in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
Soltanzadeh explained, “In the past five years since its inception, Borealis Foods has achieved remarkable milestones, including the development of valuable intellectual property, the establishment of a technologically advanced manufacturing facility, successful market introduction of two nationwide ramen brands, and diversification of revenue streams across various sales channels, all of which has positioned us well for the next phase of growth.”
He furthered, “The management and Board of Directors strongly believe that the current valuation of our publicly traded shares does not accurately reflect the inherent strength and opportunity of our business. […] We are confident that implementing the share buyback program as a strategic tool to manage our capital structure will deliver enhanced value to our shareholders.”
