Eshbal Functional Food has signed a letter of intent to acquire a majority stake in the US low-carb and gluten-free company, Dare to Be Different Foods (D2BD).
As reported by Canada-listed Eshbal, the acquisition will proceed only if both parties enter into a definitive agreement, which includes approval from the TSX Venture Exchange.
D2BD, based in New York, was founded in 2012 and specializes in manufacturing low-carb and gluten-free frozen products. Their offerings include crusts, crisps, and gnocchi formulated primarily with broccoli and cauliflower.
Eshbal plans to execute this acquisition through a combination of cash and shares, aiming for a 55% stake in D2BD.
The company also indicated that it may issue additional shares if D2BD meets specific revenue milestones.
The exact amount of cash payments and the number of Eshbal shares to be issued will be finalized after completing due diligence.
This announcement follows Eshbal’s recent strategic move, establishing Avi Markus as the new Chief Commercial Officer for North America. His focus will encompass commercial operations, including sales, distribution, partnerships, and business development. Markus previously held a position at Else Nutrition, a Canada-based infant formula company.
Earlier this month, Eshbal signed a letter of intent to acquire Gluten Free Nation, a Texas-based commercial baker known for its gluten-free bread and baked goods.
At that time, Eshbal expressed enthusiasm about “the potential to integrate Gluten Free Nation’s product line and leverage its customer relationships to further expand Eshbal’s North American presence.”
While Eshbal has established itself in foodservice and retail in Israel, it recently expanded into North America following its reverse takeover with Canada-based Hakken Capital Corp., leading to a listing on the TSX Venture Exchange.
According to Eshbal’s latest financial report, the firm achieved annual revenue of approximately $11.4 million by the end of 2024.
