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Odd Burger Puts U.S. Expansion Plans on Hold
Odd Burger has halted its planned expansion into the U.S. due to escalating political tensions between Canada and its southern neighbour.
The company announced the pause Monday in a news release. London, Ont.-based Odd Burger is a leading vegan-burger chain that also manufactures and distributes a proprietary line of plant-based proteins and dairy alternatives.
The chain had initially planned to expand its franchise operations south of the border. However, the introduction of new tariffs has created economic uncertainty, leading Odd Burger to shift its focus back to its home market.
“Given the global tariff uncertainty, we are putting the brakes on our U.S. expansion until pricing metrics can be formulated with certainty,” said James McInnes, CEO and co-founder of Odd Burger. “We are also seeing increased demand for our products in Canada, and as a Canadian company, we want to make sure that we focus on our core market at this time.”
Odd Burger operates its own manufacturing facility in London, where it produces about 20 plant-based proteins and dairy-free sauces under the brand Preposterous Foods. The company sources its ingredients primarily from Canadian suppliers and distributes its food service products through Sysco distribution centres across the country.
With new U.S. tariffs set to take effect on April 2, 2025, Odd Burger sees an opportunity to support other Canadian businesses in transitioning to locally made plant-based products.
“We believe we can help Canadian companies shift to plant-based alternatives that are both sustainable and domestically produced,” the company stated.
As part of its initial expansion strategy, Odd Burger had announced a $2-million private placement to help fund its U.S. growth. The non-brokered offering consisted of up to 6,666,666 units priced at $0.30 per unit, with each unit including one common share and one purchase warrant. These warrants would allow holders to acquire additional shares at $0.35 within two years of the offering’s close.
The funds were originally intended to support U.S. manufacturing facilities, franchise growth, and working capital needs. However, with the shift in focus, the capital will now be used to expand manufacturing and franchise operations within Canada.
Pictured: Odd Burger restaurant in Vancouver.
Photo: CNW Group/Odd Burger
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