The Investment That Wasn't: Odd Burger Pulls the Plug on Westmount Deal

Well, sometimes, things just don’t go according to plan, do they? And for Odd Burger Corporation, the popular — and ever-expanding, in truth — vegan fast-food chain, a rather significant financial arrangement has, let’s just say, gone decidedly south. The company announced recently that it’s officially terminated its ‘Refill Private Placement’ with Westmount Ventures Inc. And the reason? A rather straightforward, if unwelcome, default by Westmount.

You see, this wasn't some minor hiccup; this was a pretty substantial deal, originally unveiled back in January 2024. The idea, then, was for Westmount to acquire a hefty sum—up to $5,000,000 worth of Odd Burger units, priced at a humble $0.05 apiece. It was meant to be a shot in the arm, a solid equity infusion to fuel Odd Burger’s ambitious growth plans in a fiercely competitive market. But alas, the best-laid plans, as they say, often go awry.

The crux of the matter, the very turning point, came down to a simple deadline: May 31, 2024. Westmount was obligated, as per their agreement, to deliver a further $2,500,000 by that date. They didn't. They just… didn’t. And when a key player in a financial transaction misses such a crucial benchmark, well, what else is there to do but call it? Odd Burger, quite reasonably, chose to terminate the entire agreement.

Now, this isn't to say Westmount hasn't put any money into Odd Burger. They had, in fact, already provided an initial $2,500,000. But here’s where the story takes a rather interesting — and perhaps slightly awkward — pivot. That initial sum, originally earmarked as an equity investment, will now be treated as a loan. A loan, mind you, that matures on June 30, 2025, and carries a rather substantial 12% interest rate. Oh, and it’s secured by a general security agreement over Odd Burger’s assets. So, what was once a direct investment is now, essentially, a debt obligation. A notable shift, you could say, for any company, let alone one navigating the often-tricky waters of expansion and market penetration.

So, what does this all mean for Odd Burger? For one, the promised second half of that $5 million — another $2.5 million — is simply off the table. That’s a significant chunk of anticipated funding that’s evaporated. And the first $2.5 million? It’s no longer equity; it's a liability, complete with interest and security. This will undoubtedly prompt Odd Burger to re-evaluate its immediate financial strategy, perhaps seeking alternative funding avenues or tightening its belt a little more than initially expected. In a world where plant-based food concepts are constantly vying for capital, such unexpected turns are, honestly, just part of the journey. It’s certainly a development that keeps us, and likely their shareholders, on our toes.