Target Information

Be Active Holdings, Inc. is a company specializing in the production and sale of frozen yogurt and ice cream products primarily within the New York metropolitan area. Established in 2009 and based in Great Neck, New York, Be Active Holdings targets supermarkets, convenience stores, and other food retail outlets to distribute its offerings under the Jala brand. The company has positioned itself in a competitive market, focusing on quality and customer satisfaction to drive sales.

Industry Overview

The frozen yogurt and ice cream industry in the United States has experienced substantial growth over the last decade, driven by consumer demand for diverse flavors, health-conscious options, and innovative product offerings. The sector has seen a significant rise in consumer preferences for frozen desserts that are perceived as healthier or contain natural ingredients, leading to the introduction of fat-free, low-calorie, and organic alternatives.

In the New York metropolitan area, the market is particularly dynamic, with a wide range of established brands and emerging players competing for consumer attention. The area's diverse demographic and robust tourism contribute to a high demand for unique and indulgent food experiences. As a result, companies in this niche must continuously innovate to meet the evolving preferences of their customers.

Moreover, the shift towards online and delivery services has transformed how consumers interact with food brands. Many businesses are adapting to this trend by enhancing their digital presence and offering convenient purchasing options, including home delivery. This evolution presents both challenges and opportunities for companies like Be Active Holdings as they navigate the changing landscape of consumer behavior.

Despite the competitive terrain, the frozen yogurt and ice cream market retains strong growth potential. Factors such as seasonal sales spikes, promotional campaigns, and strategic partnerships with retailers can significantly impact market performance and brand visibility in this vibrant sector.

The Rationale Behind the Deal

The recent financing round, which totaled $500,000 in secured convertible promissory notes, is expected to provide Be Active Holdings, Inc. with the necessary capital to facilitate its growth initiatives. The ability for investors to convert notes at a predetermined price allows for an attractive investment opportunity, particularly given the company's established market presence and potential for revenue growth.

This funding can help the company expand its production capabilities, enhance marketing efforts, and explore new product lines to meet increasing consumer demand in the frozen dessert category. Strategic use of the capital will be crucial for positioning Be Active Holdings for continued success and market relevance.

Investor Information

Palladium Capital Advisors, LLC acted as the sole placement agent for this financing round. With a focus on advising and facilitating capital raising for promising companies, Palladium Capital Advisors brings valuable expertise in identifying and executing investment opportunities that align with market trends. Their influence can provide additional credibility to Be Active Holdings as it pursues growth.

Investors participating in this financing will likely appreciate the structured nature of the convertible notes, including the protections afforded by the terms that restrict the company from incurring additional debt or making significant changes without majority consent. Such measures could enhance investor confidence in the company's management and strategy.

View of Dealert

From an analytical perspective, this investment in Be Active Holdings, Inc. seems promising, particularly given the robust growth trajectory of the frozen yogurt and ice cream market. The strategic funding will likely enable the company to scale its operations effectively and solidify its market position. Additionally, the opportunity for investors to convert their notes into equity adds an enticing dimension, allowing participation in future upside potential.

However, it is essential for the company to navigate challenges such as competition and changing consumer preferences carefully. Maintaining product quality and engaging with customers through marketing initiatives will play pivotal roles in its success. Investors should monitor how well Be Active Holdings adapts to market dynamics in coming months.

Overall, if management can execute its growth strategy efficiently and strengthen its brand equity, this deal could yield favorable returns for investors, making it a sound investment in a thriving industry.

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Palladium Capital Advisors, LLC

invested in

Be Active Holdings, Inc.

in 2015

in a Venture Debt deal

Disclosed details

Transaction Size: $500M

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