TORONTO — On Jan. 16, Global Food and Ingredients Ltd. (GFI) shared it has entered agreements relating to its recently created subsidiary Big Sky Milling Inc. According to GFI, the agreements will generate investment capital of $12.3 million, unlocking “significant value” for its existing pet food ingredients business.

The agreements relate to GFI’s agreement with 35 Oak Holdings, in which GFI announced plans to raise $11.8 million through equity investment and debut, and 35 Oak would contribute a $500,000 investment, raising the total investment in to $12.3 million.

Funds from the transactions will go toward GFI’s core ingredients business, in which the business will enter into a management services agreement with Big Sky, creating an annual revenue of at least $180,000. GFI plans to transfer all assets and liabilities associated with its pet food ingredients business to Big Sky. As part of this, GFI will sell a 49.9% stake of common shares in Big Sky to 35 Oak, with the goal of raising an additional $3.45 million for the company.

Additionally, 35 Oak will issue loans totaling up to $10 million to Big Sky.

These transactions are expected to close around Jan. 31.

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