The Food Revolution Group (ASX: FOD) has received strong institutional support after Perpetual and SG Hiscock scooped up a 40 million block of its shares.
The duo snapped up the shares from Victoria Clean Technology Fund (VCTF), which has reduced its holding in Food Revolution to allocate funds to other early stage businesses in need of support.
News that Australia’s largest wealth manager Perpetual and award winning boutique fund manager SG Hiscock have taken the cornerstone stake in Food Revolution pushed its shares up 34% to reach $0.11.
This follows the strong growth of Food Revolution branded products in Australia and commercial success in Victoria.
Following the fast-growth of Food Revolution into a successful cash flow positive business, the VCTF sell-down is part of its investment mandate to support early-stage businesses that need support.
Food Revolution said VCTF hopes to support the growth of similar globally competitive businesses with the view to provide jobs for Victorians and support the economy.
Food Revolution executive chairman Bill Nivoski commented on today’s new cornerstone investors saying the company is building a highly credible share register to support and drive growth for its long-term vision.
“The Food Revolution is growing at a rapid pace and it’s pleasing that two highly esteemed Australian financial institutions have taken a significant position in the company,” he said.
“The growing interest in our company reflects the traction we are gaining and not only validates our strategy but also brings stability at a time where we are poised to enter the Chinese market and rapidly accelerate sales growth.”
Food Revolution announced earlier this week that it had secured a $20.25 million investment and a China distribution deal from Careline Australia, a health and skincare market and import-exporter, headed by chief executive Dr Tao Norman Li.
Careline will target $20 million in new sales of Food Revolution products within two years and the parties have also committed to a distribution agreement to expand Food Revolution’s sales into China through Careline’s growing network of more than 10,000 affiliate marketing agents, also known as daigous.