Odd Burger, a vegan fast-food restaurant chain with nine locations in Canada, filed on Thursday with the SEC to raise up to $12 million in an initial public offering. The company is currently listed on the TSX Venture Exchange (ODD) and the OTCQB (ODDAF). Formerly known as Globally Local, Odd Burger went public on the TSXV in April 2021 through a merger with Canadian SPAC Black Lion Capital.
The London, Canada-based company plans to raise $12 million by offering 2.1 million units at a price range of $5.44 to $5.94. Each unit consists of one share of common stock and one warrant, exercisable at 125% of the offer price. At the midpoint of the proposed range, Odd Burger would command a market value of $25 million.
Because the company is offering units with warrants attached and is expected to have a post-IPO market cap of less than $50 million, Odd Burger will be excluded from Renaissance Capital's 2023 IPO stats.
Odd Burger owns, operates, and franchises a chain of vegan fast-food restaurants, and currently has nine locations operating and 11 locations in active development or under construction in Canada. The company also operates a food manufacturing division under the brand Preposterous Foods, which creates and manufactures proprietary plant-based proteins and sauces for the food service industry that are then distributed through a national supply agreement with Sysco. Odd Burger plans to initially expand by opening locations in Canada's other provinces but also plans to expand internationally, first focusing on the US market. The company plans to drive growth primarily through a franchise model, though its food manufacturing division is expected to be the primary revenue driver as its franchise model grows.
Odd Burger was founded in 2015 and booked $2 million in sales for the 12 months ended September 30, 2022. It plans to list on the Nasdaq under the symbol ODDB. The company filed confidentially on October 13, 2022. ThinkEquity is the sole bookrunner on the deal.
