Investment will allow Farmstead Manufacturing to grow its facility from 1,000-square-feet to 5,000-square-feet, adding 25-30 jobs in the local community

December 19, 2023 10:00 AM Eastern Standard Time

LEEDS, Utah–(BUSINESS WIRE)–Advantage Capital, a leading impact investment firm, today announced a $1.75 million investment in Utah-based baked goods manufacturer, Farmstead Manufacturing. The company will use the financing to support the land purchase and build out of a commercial bakery from 1,000-square-feet to 5,000-square-feet to expand its operations and distribution through wholesale, e-commerce, and catering.

“We want to continue to grow at a sustainable rate, and we are eager to take these next steps to achieve our goals.”

“Farmstead has been steadily growing for nearly two years now, and this capital came at a pivotal time as we head down a new path to continue to build our business,” said Li Hsun, COO, Farmstead Manufacturing. “We want to continue to grow at a sustainable rate, and we are eager to take these next steps to achieve our goals.”

The investment was made in connection with the Utah Rural Jobs Act (RJA)—a program that was first signed into law in 2018 and renewed in 2022. The program supports businesses in rural Utah with needed capital to create full-time, high-wage jobs by providing flexible and affordable capital.

“I am pleased to see the Utah RJA program working just as we intended it to,” said Utah State Senator Evan Vickers. “Often times rural communities are overlooked when it comes to small business financing. However, Utah is a fantastic state to grow a business, and Farmstead is a perfect example of that. With this program, we can continue to stimulate local economies and create good paying jobs for people in the community.”

With the expansion of its facility, Farmstead will become a major employer in Leeds, Utah with plans to hire 25-30 new employees, offering competitive starting wages of $21 per hour with comprehensive health, dental and vision benefits.

Advantage Capital also partnered with World Trade Center Utah and the St. George Area Chamber of Commerce to source and facilitate the transaction.

“We are excited for the growth potential of Farmstead here in our community,” said Shawn Christensen, CEO of the St. George Area Chamber of Commerce. “Seeing a local company expand on such a grand scale is further proof that Southern Utah is a great place to headquarter a business. Arranging funding for this project shows what collaboration can do when the right parties are involved. Now jobs will be added to our market, and Farmstead will have more reach than ever before.”

The new facility is slated to be completed in the spring of 2024 and will mark a major milestone in the company’s growth and production capacity.

“Farmstead Manufacturing has the kind of entrepreneurial vision we look for in a business when we invest,” said Trey Garland, Senior Associate, Advantage Capital. “We are pleased to be able to work with innovative programs such as the Utah RJA to help provide the kind of flexible financing businesses like Farmstead Manufacturing are looking for. It is exciting to see the growth potential of the company and the great jobs it will bring to the local community.”

About Advantage Capital

Advantage Capital provides financing to established and emerging companies located in communities underserved by conventional sources of capital. Since 1992, the firm has invested more than $4.1 billion in companies from a diverse array of industry sectors and has helped support more than 67,000 jobs. Learn more at advantagecap.com, or via X (formally Twitter) or LinkedIn.

About Farmstead Manufacturing

Farmstead Manufacturing is a supplier of croissants, donuts, danishes and pastries to cafes, hotels and wholesalers across Utah, while also providing catering services. Farmstead prides itself on providing the best baked goods possible to Utah residents while also shaping the community in a positive manner by offering quality jobs and a positive work environment.

Advantage Capital is an Investment Adviser registered with the U.S. Securities & Exchange Commission. Such registration, however, does not imply a certain level of skill or training. This release has been prepared for informational purposes and to announce a prior event, and nothing herein should be construed as an offer of investment advisory services or as an offer to sell or a solicitation of an offer to purchase any securities or investment product. All offers of investment interests in any fund or investment vehicle managed directly or indirectly by Advantage Capital are and will be made only to qualified prospective investors pursuant to separate and definitive offering and subscription documents in accordance with applicable federal and state securities laws. Advantage Capital is an equal opportunity provider.

Any third-party statements herein are by persons other than current clients or investors in any private fund directly or indirectly managed by Advantage Capital. Although Advantage Capital did invest cash funds in Farmstead Manufacturing through the Utah Rural Jobs Act program and has paid the St. George Area Chamber of Commerce annual dues and sponsored its annual conference, neither Li Hsun (COO of Farmstead Manufacturing) nor Shawn Christensen (CEO of the St. George Area Chamber of Commerce) has received any direct compensation, whether in cash or non-cash form, for the statements or opinions expressed herein. There are no known material conflicts of interest on the part of any third party making or expressing such statements or opinions resulting from such party’s relationship with Advantage Capital or from Advantage Capital’s cash investment in Farmstead Manufacturing, payments to the St. George Area Chamber of Commerce or participation in any federal or state tax credit program.

Contacts

Advantage Capital
Joe Stosberg, Communications Manager
jstosberg@advantagecap.com