BranchOut Food Inc. Announces Underwritten Offering; Net Proceeds ~$2.5M

What Happened

• BranchOut Food Inc. announced on Aug. 26, 2026 that it entered into an underwriting agreement with Lake Street Capital Markets LLC (the Representative) for an underwritten public offering of 820,588 shares of common stock at $3.40 per share. The offering closed on Aug. 28, 2026. The Representative has a 30-day option to buy up to 123,088 additional shares to cover over‑allotments.

Key Details

• Offering price: $3.40 per share for 820,588 shares (option for 123,088 additional shares for 30 days).
• Net proceeds to the company: approximately $2,500,000 after underwriting discounts, legal fees and estimated offering expenses.
• Underwriting fee/discount: 7.0% of gross proceeds, plus reimbursement of certain expenses; the Company made customary representations and indemnities.
• Lock-up: officers and directors agreed to a 90-day restriction on selling or issuing shares (with customary exceptions); the Company agreed not to issue or announce issuance of shares or equivalents during the 90‑day period except as exempted.

Why It Matters

• The transaction provides BranchOut with immediate capital (about $2.5M net) to fund working capital, operating expenses and capital expenditures as stated in the prospectus supplement. The 90‑day lock-up limits insider selling in the near term, which can help reduce short-term dilution pressure. Investors should note the underwriting costs (7%) and the potential for up to ~15% more shares if the overallotment option is exercised (123,088 ÷ 820,588 ≈ 15%).