On behalf of the Directors I am pleased to offer you the opportunity to become a Shareholder of Forbidden Foods Limited.
Forbidden Foods operates in the Food and Beverage Industry in Australia, producing healthy food products under three primary
brands – Forbidden, Sensory Mill and Funch. Founded in 2010, Forbidden Foods launched its flagship product ‘Black Rice’ in
Australia in 2012. Recognising the opportunity to build a strong brand‑led food business by introducing unique rice varieties
into Australia and New Zealand, Forbidden Foods launched its Green Rice and Red Rice products in 2013.
By 2016, Forbidden Foods had expanded its operations, establishing a New Zealand distribution centre and supplying a variety
of rice and rice flour products. In 2018, Forbidden Foods successfully expanded the existing Australian rice flour accessible
market from 3 types of flour to 35. Today, Forbidden Foods has a diverse health foods retail and food service range and exports
to customers in New Zealand, Ireland, Singapore and the United States.
Forbidden Foods has a diverse range of customers within the Food and Beverage Industry operating within retail (major and
independent), food service, food manufacturing and quick service restaurants. Through its distribution channels, the Company
has access to over 3,500 retailers, 500 food service and QSR customers.
Forbidden Foods operates in the Organic Food, Healthy Snack, Baby Food and Industrial Food Service and Food Manufacturing
segments of the Food and Beverage Industry. The demand for healthy, better‑for‑you food products is expected to increase
and Forbidden Foods considers that it is well placed to establish and grow its market share in its targeted sectors of the
Food and Beverage Industry.
Forbidden Foods is led by an experienced Management team and highly capable Board, with a demonstrated track record
in the Food and Beverage Industry, relevant business knowledge, financial management, corporate strategy and corporate
There is much to be excited about in the near future for Forbidden Foods. The Company aims to launch new product lines,
increase its existing market penetration and broaden its international focus. Forbidden Foods is currently in the process
of launching a new Funch range of 100% Australian-made Baby Food products, suitable for both domestic distribution and
distribution into Asia. Management will continue to utilise their skills in identifying key consumer trends for specialty food
products and drive growth by exploiting new opportunities they identify within the Food and Beverage Industry.
The Company is seeking to raise $6 million, through the issue of 30,000,000 Shares at the Offer Price of $0.20 per Share. This is
in addition to $2,000,000 raised in December 2019 and January 2020 through the issue of Convertible Notes (see Section 9.4).
The Offer Proceeds will be used primarily to fund sales, marketing and brand development costs. On Completion of the Offer,
Successful Applicants will hold 40% of the Shares and Existing Shareholders, Convertible Noteholders, the Lead Manager
and the Corporate Adviser will hold 60% of the Shares.
This Prospectus contains detailed information about the Offer, the Food and Beverage Industry, the Company’s operations,
financial position and performance and key personnel. It also provides detailed information on the risks associated with an
investment in Shares, which are set out in Section 5. Key risks include the reliance on third party raw material and manufacturing
suppliers, the risk of adverse changes to foreign exchange rates, the Company’s reliance on sales channels and relationships
with key customers and the fact that the Company – like other participants in the Food and Beverage Industry – does not have
fixed contracts in place with key customers.
I encourage you to read this Prospectus in detail before making an investment decision.
On behalf of the Board, I look forward to welcoming you as a Shareholder of Forbidden Foods.