Huntington Beach-based Nate’s Food Co. said it will get a $5 million investment over two years from an affiliate of Ridgefield, Conn.-based Southridge LLC.
The investment is expected to begin in the first quarter of next year, said Tim Denton, a principal of Nate’s and its corporate counsel.
The agreement with Tarpon Bay LLC, the Southridge affiliate, calls for it to buy shares in Nate’s at a 10% discount, according to a regulatory filing.
Denton said Southridge will hold some shares and resell others to other investors but would never exceed a 9.9% ownership threshold in Nate’s.
The food company sells a premixed pancake batter in a pressurized can under the Nate’s Homemade name. Denton said the product is made in a facility in Northern California and sold online as Nate’s seeks retail outlets.
