MamaMancini’s Holdings, a marketer of specialty pre-prepared, frozen and refrigerated food products, secured an expanded credit facility with M&T Bank in the amount of $10.5 million for the purpose of acquisition financing at an interest rate of 3.5% above one-day LIBOR.
Previously, MamaMancini’s maintained an undrawn $4.5 million working capital credit facility that could be drawn through June 2023. The company will use the additional $6 million, which can be drawn through early August 2023 with a maturity date of 60 months from the date of draw down, for acquisition financing. M&T Bank will need to approve any proposed acquisition for MamaMancini’s to utilize this funding. Additional funding may be available depending upon the financing needs of a proposed acquisition
“M&T Bank has been an ideal financial partner for us, and we appreciate their continued support as we accelerate our growth strategy through acquisition, “Carl Wolf, chairman and CEO of MamaMancini’s, said. “Taking a look at the attractive sales multiples in the food space, combined with our cash balance of over $4 million and this new expanded credit facility, we are confident our new acquisition program will have sufficient capital to fund its pipeline of accretive prospects.
“We are currently seeking complementary food product companies with sales in the $12 to $20 million per year range, generating positive EBITDA with a product that is symbiotic to the company’s existing retail, club store and food service distribution network. We hope to have further material updates on this front in the near term as we advance candidates through our extensive due diligence pipeline. I look forward to continued shareholder value creation in the months ahead as we continue our rapid pace of operational execution.”
