Eshbal Functional Food Inc Buys Gluten Free Nation

Eshbal Functional Food Inc has acquired the business of Gluten Free Nation, a Houston-based producer of premium gluten-free baked goods, strengthening its position in the fast-growing free-from bakery segment.

The transaction sees Eshbal Functional Food Inc acquire the assets of Gluten Free Nation from Starcall Broadcasting LLC through its US subsidiary, Eshbal USA Inc. The total consideration is US$0.74m, comprising US$0.24m in cash and US$0.50m paid through the issuance of 3,846,154 common shares at a deemed price of US$0.13 per share. The deal is structured as an arm’s length transaction and is subject to approval by the TSX Venture Exchange.

Founded by Randi Markowitz, widely known as The Gluten Free Guru, Gluten Free Nation has built a national presence in the US with a portfolio of certified gluten-free breads, rolls, muffins and sweet baked goods. The brand serves retail, foodservice and e-commerce channels, with a focus on delivering gluten-free products that match conventional bakery items in taste and texture.

Eshbal said the acquisition aligns with its strategy to expand its functional and specialty food offerings, particularly in categories driven by health, lifestyle and dietary needs. All shares issued as part of the transaction are subject to a statutory hold period of four months and one day under applicable Canadian securities regulations.