Organic To Go goes public
Chain eyes expansion opportunities with new funding
by Sustainable Food News
February 13, 2007
Organic To Go, the nation's first fast-casual cafe to be certified as an organic retailer, said Tuesday it is now a publicly traded company.
The company merged its operations into SP Holding Corporation, a public entity trading on the over-the-counter electronic bulletin board. Organic To Go now operates as the only wholly owned subsidiary of SP Holding. Terms of the deal were not disclosed.
We believe it is in the best interests of our company, and the time is right, to become a public company, said Jason Brown, founder, chairman and chief executive officer. "The marketplace for companies operating in organic-related businesses is strong and is expected to only improve.
The Seattle-based company said it will continue an aggressive business strategy of internal growth and expansion through acquisitions.
In addition to the merger, Organic To Go completed the first phase of a $6.5 million private placement consisting of common stock and warrants, raising $4.7 million with the balance due on or before Feb. 19.
The company closed in December on $5.6 million of convertible bridge financing, raised from private equity investors. That brings total investment in Organic To Go to $15.5 million since November 2004.
The company ended 2006 with about $10 million in sales, a 61 percent increase compared with 2005 revenues.
The company operates 12 cafes in Seattle, Washington, and in Los Angeles and Orange County, Calif. Organic To Go items can also be purchased at more than 45 other retail locations.
Organic To Go locations can be found on corporate campuses including Microsoft and Starbucks, on eight college campuses, and at the Los Angeles International airport in four locations.