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Food Venture Financing News - Weekly Issue No. 31

10.20.20
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In This Issue:

Potential PPP Extension

  • Senate Majority Leader McConnell scheduled two votes this week to extend, and allocate additional funding to, the PPP program.
  • It is unclear whether the votes – which are similar to a failed GOP bill in September – can pass the GOP-majority Senate without Democratic support.
  • These votes were scheduled against the backdrop of a Tuesday deadline set by Speaker Pelosi for an agreement between the Trump Administration and House Democrats on a broad stimulus bill.

PPP Forgiveness

  • As a reminder, the SBA has announced that it has begun processing PPP forgiveness applications.
  • The SBA also recently released a new streamlined application for borrowers with PPP loans of $50,000, which exempts those borrowers from any penalties in forgiveness based on reductions in headcount and/or wages.

Help Finding a "Finder?"

  • The SEC proposed a new safe harbor last week for those who engage "finders" in helping raise capital. The SEC's Public Statement is here.
  • A "finder" can help businesses navigate capital raises by making critical introductions to investors.
  • Depending on specific facts, however, the finder may be deemed to be an unregistered broker/dealer, which can have serious legal consequences for the business and its capital raise.
  • It remains to be seen if the safe harbor will be adopted (and what it will ultimately look like), but the SEC's moves are a positive development in response to the capital crunch many food and beverage businesses are experiencing.
  • Kroger announced that it will add more than 50 new products to its plant-based product line, Simple Truth Plant Based, highlighting the food industry’s new focus on the plant-based-protein sector.
  • Indoor farming and sustainability initiatives continue to accelerate. Driscoll's and Plenty Unlimited Inc. announced a joint partnership that will grow Driscoll's strawberries in vertical indoor farms on a yearlong basis.
  • HSR filings for M&A transactions increased significantly last month, signaling a renewed pipeline of M&A transactional activity.

CPG Corporate Venture and Private Equity Investment Funds News

Our featured CPG corporate venture investment fund this week is Chicago-based Arbor Investments.

  • Arbor Investments recently raised $1.67 billion in two new funds for investments in the food and beverage industry.
  • Arbor Investments V LP raised $1.5 billion in investor commitments, and Arbor Investments' new mezzanine debt fund, Arbor Debt Opportunities Fund II, LP, secured $168 million in capital commitments.
  • The firm targets investments in food and beverage brands, as well as businesses that serve the sector, including packaging and distribution companies.
  • Arbor takes controlling stakes in mid-market companies, typically investing $100 million to $280 million in portfolio companies.

ARTICLES

EVENTS

Naturally Bay Area QUICK BITES Lunchtime Series

Know Your Roots! Building a Purpose-Driven Organization

Thursday, October 22nd, 12:00 - 1:00 p.m. PT

What does a pro soccer team know about building a mission-driven business? A lot! The Oakland Roots Sports Club has established a winning team and a passionate fanbase while keeping purpose and community initiatives at the core of their mission and work.

Join us in our talk with their leadership team, including their Chief Purpose Officer, Chief Marketing Officer, Chair Of Their Board, and more ... They'll provide tips and a guide to how they've created a great team and goodwill that is propelling this homegrown phenomenon to new heights!

  • Members of the Oakland Roots Sports Club Leadership Team
  • Pete Brennan: Host, Naturally Bay Area & Co-Founder, Soñar Foods

Register here

Naturally Bay Area QUICK BITES Lunchtime Series

Finding Growth Given Continuing Behavioral Shifts From COVID

Wednesday, October 28th, 12:00 - 1:00 pm P.T.

  • Jessica Malach: VP Partnerships & Insights at Social Nature
  • Christie Lee: Founder of Nourishing Food Marketing
  • Jennifer Berliner: Moderator, Naturally Bay Area & Head of Go To Market, Planet FWD

Register  here

Please check out DWT's newly re-launched Startup Law Blog

At DWT, we are proud to have one of the largest Food & Beverage legal practices in the country, with over 40 attorneys representing food innovators, entrepreneurs, and investors at every level of the food chain, from Farm to Label.

Please contact our Food and Beverage team if we can assist you in any way in these unprecedented times.

The facts, laws, and regulations regarding COVID-19 are developing rapidly. Since the date of publication, there may be new or additional information not referenced in this advisory. Please consult with your legal counsel for guidance.

DWT will continue to provide up-to-date insights and virtual events regarding COVID-19 concerns. Our most recent insights, as well as information about recorded and upcoming virtual events, are available at www.dwt.com/COVID-19.

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