The Quebec company Marché Goodfood, which is experiencing financial difficulties, announced on Monday that it had received funding of nearly $12.7 million, including $10 million from Investissement Québec.
• Read also: Stock market: Goodfood shares plummet
• Read also: Goodfood drops 30-minute delivery
The financing takes the form of a debenture, a type of loan. The associated annual interest rate is 12.5%.
Members of Goodfood’s senior management and its board of directors also participated in the financing.
Sector in decline
Like other companies in the home meal ingredient delivery industry, Goodfood is currently suffering from a loss of interest in this service, which had exploded in popularity at the start of the pandemic. Its stock price has plummeted more than 80% in the past 52 weeks.
Note that Investissement Québec contributed to a $46 million loan obtained by Goodfood in December 2020.
Francis Halin’s photo
Guy LeBlanc, CEO of Investissement Québec
LeBlanc Former Board Member
Investissement Québec subsequently assured that its big boss, Guy LeBlanc, had not taken part in the decision-making process because he had already served on the board of Goodfood.
The same precautionary measure was taken in the case of the funding unveiled on Monday.
“Mr. LeBlanc excludes himself from all discussions surrounding issues on which he may have been involved in any way in the past,” assured the Journal a spokesperson for Investissement Québec, Isabelle Fontaine.
Goodfood’s stock rose more than 9% on the Toronto Stock Exchange on Monday.