This case study reviews a recent investment made by Sage Growth Capital.
Edible Armstrong Inc. d/b/a Killer Creamery produces keto-friendly ice cream products. Based in Boise, ID the company sells through traditional grocery stores throughout the country including Albertsons, Raley’s, Whole Foods, Safeway, and QFC.
Sage invested $300k which enabled the company to fulfill orders and get into a co-packing facility.
Sage’s capital allowed the company to avoid an equivalent amount of equity capital, reducing dilution by 8.3%.
The reduced dilution equates to over $1.9M based upon the current valuation.
Margin generated by the increased sales over 3 years is about 9 times the amount required to service the repayment.
Sage investors have enjoyed regular cash flow from their investment and are likely to achieve an IRR greater than 37%.
The entrepreneur and management team have reviewed this case study and have given us permission to disclose the information herein.