Else Nutrition Holdings Inc (BABYF)

[pual]

This is only an illustration of a case similar (changes required) but also different (Else profitability is not the issue) from our situation.

I own another small stock (also listed on TSXV) from a young plant food business that had to FUNDAMENTALLY REALIGN ITS STRATEGY..

Less than 2 years hold, this company had a different problem to result but they addressed it for what it was. Their problem was thew grew revenues rapidly (4 times what Else’s were Q4FY21) but important financial losses.

Accepting something was wrong, the board recently made fundamental changes in there organisation impacting the organizational, financial, operational and strategic decisions of the company.

The president of the company said: ‘The company is at an important juncture, and we are taking decisive steps. Our focus is to continue to build on our brand and reputation and grow our market share in the plant-based meat segment while optimizing our operations towards a path to profitable growth.The company is implementing cost improvement measures as it transitions from a focus on top line growth, to a focus on achieving sustainable, profitable growth.’

Some of the recent steps taken included:
- Termination of the CEO (The search from a new one is going on)
- Acceptation of the resignation of their Chief R&D officer
- Right-sizing of the organization through a workforce reduction
- Nomination of a company's Chief Commercial Officer.
- Nomination of a Vice President of Sales
- Nomination of a Vice President of Operations.

Else problem is different for sure but executives of the company must accept that they have a serious issue (revenue growth) that they also have to address. More of the same will only be leading to loss of the opportunity.