Previously, PSN paid attention to the latest developments of Aureus Inc. ($ARSN), a potential market leader in the food brand development industry focused on the acquisition and growth of private companies in the food industry. Aureus is also the proud owner of Yuengling’s Ice Cream. It owns all intellectual property and manages distribution. In an interview with Aureus, interesting things came to light followed by positive news.
What do we know after the interview
With Yuengling’s Ice Cream a starting point has been created to realise further acquisitions within this segment. The focus is on building a diversified conglomerate of food-related companies. Aureus believes that some sectors will see consolidation rather than organic growth. The intention is that subsequent acquisitions will result in more food brands with possible expansion into the health and wellness food sector. The motivation is to respond to healthier and more conscious eating. Aureus has set itself the goal of providing a substantial part of its portfolio with companies that are in line with this trend. With Yuengling’s Ice Cream in the ranks, the acquisition of specialised assets related to the food industry will be realised. Aureus does this by bringing a promising product or concept to the market, followed by establishing a good brand with the help of professional management.
Despite the fact that planned acquisitions had to be halted and the process of full reporting has been delayed, Aureus is positive about the future. COVID-19 had unpleasant consequences for many companies, but despite this, Yuengling’s Ice Cream has great potential and they are determined to execute the business plan and create value for shareholders. Aureus is actively seeking $5-$6 million in equity financing for the expansion plans of the Yuengling’s Ice Cream brand. We now know that this figure includes two acquisitions, in addition to the expansion of Yuengling’s Ice Cream. COVID-19 slowed that progress given the uncertainty in the capital markets and the need to complete business actions. Capital is being raised with Waterside Capital Advisors Inc. and Hanover International, Inc. as investment bankers.
An important financial boost
A result emerges today after Aureus announced that it no longer needed its Regulation A as a source of funding for its business activities. Due to the improvement in its financial situation, Aureus has completed audits for some of the older periods. These are expected to be published within a few weeks, with a view to completion at the end of September or the beginning of October. In addition to the CARES Act, Aureus appears to be eligible for various incentive programmes. This would mean that the institutional debt could be further restructured.
Yuengling’s Ice Cream is hungry for the market
Finally, additional information on why Yueungling’s Ice Cream stands out from the competition. Yuengling’s Ice Cream is a super premium ice cream comparable to Haagen Dazs and Ben & Jerry’s. With 14% butterfat, 50% overshoot (air) and natural ingredients, the company focuses on individuals looking for and appreciating high quality ice cream. All complementary products will most likely target the same socioeconomic, demographic and taste profile.
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