Helsinki Stock Exchange|Akseli Herlevin’s Street Food Group intends to enter the First North growth market of the Helsinki Stock Exchange through the back door by merging with the stock’s smallest company in terms of market value.
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Street Food Group plans to list on the stock exchange by merging with Rush Factory.
Rush Factory acquires Street Food Group’s stock through a share exchange.
Conditions have been set for the merger, such as the sale of real estate and the issue of shares.
The new company focuses on food tours and franchise business.
Restaurateur Akseli Herlevin the company Street Food Group plans to go public.
The company plans to list on the stock exchange’s First North growth market through the back door, so to speak. The stock exchange release published on Friday states that Street Food Group plans to merge with Rush Factory, the smallest company on the Helsinki Stock Exchange.
In the arrangement, the event organizer Rush Factory would acquire the entire stock of Street Food Group through a share exchange. If the arrangement goes through, Street Food Group’s shareholders would own 68 percent of the company’s shares.
A whole set of conditions have been set for the merger. Among other things, Rush Factory should get the property it owns sold for a purchase price of at least 750,000 euros. According to the company, the property is for sale for 1.3 million euros.
The company said on September 16 that it had learned that its working capital loan and the bank loan taken for the warehouse property in Masku will mature on September 28. According to the company, the amount due is more than 534,000 euros.
Street Food Group, on the other hand, is required to organize a paid share issue in which it collects new capital of at least 300,000 euros.
Amounts are large compared to the size of the company. Rush Factory’s turnover last year was 3.2 million euros, and its operating profit was 1 thousand euros. The nominally profitable result was an improvement to 2022, when the company’s operating result was more than 1.2 million in loss.
Measured by market value, Rush Factory is clearly the smallest company on the Helsinki Stock Exchange. The price of its share is 0.3 euros, and the company’s market value remains at just over 700,000 euros.
The company organizes color obstacle course events in several countries. According to the company’s financial statement release, a total of 26 of these events were organized last year.
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Measured by market value, Rush Factory is clearly the smallest company on the Helsinki Stock Exchange.
According to the preliminary information given in the release, Street Food Group’s turnover last year was just under 10.7 million euros, and the operating result was a loss of 190,000 euros.
In the release, it is estimated that the company’s net sales this year will decrease from the previous year due to the company’s strategy change and the closing of poorly profitable brick-and-mortar restaurants. However, the company’s profitability is believed to remain at the same level or improve.
According to the announcement about the merger intentions, the company originated from the Naughty Brgr restaurant founded by Akseli Herlev in 2015, but has since expanded to more locations and started new businesses.
These are mentioned in the announcement Burger men-television programs, the Naughty Studios production company that produces the Herlevin Hyvää YouTube channel, and the Naughty Retail company that mainly develops consumer products sold in Kesko’s retail store.
If merger of the companies takes place, according to the press release, Rush Factory’s current business will initially focus on food tours implemented in Finland together with Street Food Group. The first of these is planned to be held in late spring 2025.
According to the release, the plan is to produce several food and drink events per year in the future.
Street Food Group, on the other hand, plans to continue its current operations. According to the release, the company mainly focuses on franchise business, Burger men– for producing the program format and for the development and sale of retail products. In addition, the company currently runs three of its own restaurants.
Companies estimate that the arrangement has been implemented by the end of the year. If the merger takes place, we plan to build a new strategy for the new company, elect a new board and come up with a new name.
“Rush Factory has been looking for a solution and a new direction for the development of the company for a long time after the challenges caused by the corona years. Discussions with Street Food Group have been fruitful and the planned new entity perfectly combines the core competences of both companies”, Chairman of the Board of Rush Factory Markus Niemelä says in the announcement.
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