Nate’s Foods Co (OTCMKTS:NHMD) announced it broke ground on the site of a new facility it is developing. The new facility will increase production by nearly 10 million cans in 2015. It will also enhance the production from 5 million cans to 15 million cans annually. The new facility is expected to begin operating in the next 12 months and is being built in Fairfield, CA.
The new facility will play a major role in allowing the company to meet projections for fiscal 2015. SouthCorp Capital is assisting Nate’s Foods with another project, a facility in Indiana. Plans for the Indiana facility are expected to be submitted within the next 45-60 days, and is projected to produce up to 100million cans per year.
Expanding Product Line
Nate’s Foods is planning to utilize the Indian plant to expand its current product line. New products include Compound Butters, Omelet, Cookie Mix, Guacamole, Brownie Mix, Syrups, Cake Mix in addition to the flavor expansion. It is expected to become operational within the next 24 months.
Merieux NutriSciences to will lead the company in the final phase of FDA certification for commercial sales. Once certification is attained the company can move forward with a large list of product additions.
Recently Nate’s foods also announced it has changed their brand name from Nate’s Pancakes to Nate’s Homemade. This was done in an effort to create an umbrella brand the company could use as it is planning many new product releases over the coming 24 months.
The chart of Nate’s Foods Co (OTCMKTS:NHMD) is marked by a consistent series of consolidation and rallies, which generally implies long term strength of the stock. The first rally of the year of 2014 was followed by a multi-month sideways phase, which finally resulted in a much bigger rally. Now the correction following the rally has found support from a very important historical area and as long as this support band $0.045 – $0.065 remains protected, the bulls may take the price higher again.
Nate’s Foods Co (OTCMKTS:NHMD) lost 8.56% and closed at $0.110 on a volume of 711,128 shares on Friday.