Happy Valley Nutrition Quarterly Activities Report and Appendix 4C

22 April 2022: Happy Valley Nutrition Limited (ASX: HVM; 'Happy Valley' or 'the Company') is pleased to provide its quarterly activities report and Appendix 4C for the quarter ending 31 March 2022.The Company plans to supply a range of high-quality, specialty nutritional powders to customers in the food & beverage sector.

Quarterly Highlights

Bulk Earthworks:

  • • The earthworks required to prepare for building the Facility in Otorohanga has now been completed and practical completion certificate was issued on 14 February 2022.

    (Drone footage of the site - January 2022)

Financial:

  • • Expenditure for the March quarter 2022 from operating and investing activities was NZD 1.4 million, with cash on hand at 31 March 2022 of NZD 2.4 million.

  • • The Company repaid $250,000 of borrowings during the March 2022 quarter.

Operational :

  • • Ivan Hammerschlag resigned as Chairman and Director effective 28th February 2022 and Kevin Bush was appointed Chairman, replacing Ivan.

Payments to related parties:

  • • The Company made payments to related parties of NZD 0.14m during the quarter. These include settlement of directors' fees and non-director services, payment to VCFO Group for tax services and rent, and payment to AOP Services for advisory services.

Approved for release by the Board.

On behalf of the Board:

Kevin Bush

For all shareholder enquiries please contact:IR@hvn.co.nz

Appendix 4C

Consolidated statement of cash flows

Current quarter

$NZ'000

Year to date (9 months) $NZ'000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(a) research and development

(b) product manufacturing and operating costs

(790)

(1,950)

(c) advertising and marketing

(d) leased assets

(e) staff costs

(257)

(899)

(f)administration and corporate costs

1.3

Dividends received (see note 3)

1.4

Interest received

0

1

1.5

Interest and other costs of finance paid

1.6

Income taxes paid

1.7

Government grants and tax incentives

1.8

Other (provide details if material)

57

172

1.9

Net cash from / (used in) operating activities

(991)

(2,677)

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a) entities

Quarterly cash flow report for entities subject to listing rule 4.7B

Name of entity

Happy Valley Nutrition Limited

ABN

Quarter ended ("current quarter")

ACN 636 597 101

31 March 2022

(b) businesses

(c) property, plant, and equipment

(438)

(1,914)

(d) investments

(e) intellectual property

(f)other non-current assets

2.2

Proceeds from disposal of:

(g) entities

(h) businesses

(i)property, plant, and equipment

(j)investments

(k) intellectual property

(l)other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

2.6

Net cash from / (used in) investing activities

(438)

(1,914)

3.

Cash flows from financing activities

3.1

Proceeds from issues of equity securities (excluding convertible debt securities)

3.2

Proceeds from issue of convertible debt securities

3.3

Proceeds from exercise of options

3.4

Transaction costs related to issues of equity securities or convertible debt securities

3.5

Proceeds from borrowings

1,100

3.6

Repayment of borrowings

(250)

(250)

3.7

Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

3.10

Net cash from / (used in) financing activities

(250)

850

4.

Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of period

4,047

6,138

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(991)

(2,677)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(438)

(1,914)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

250

850

4.5

Effect of movement in exchange rates on cash held

31

2

4.6

Cash and cash equivalents at end of period

2,399

2,399

5.

Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter

$NZ'000

Previous quarter

$NZ'000

5.1

Bank balances

2,399

4,047

5.2

Call deposits

-

-

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

2,399

4,047

6.

Payments to related parties of the entity and their associates

Current quarter

$NZ'000

6.1

Aggregate amount of payments to related parties and their associates included in item 1

137

6.2

Aggregate amount of payments to related parties and their associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

Payments to related parties include: settlement of directors' fees and non-director services, payment to VCFO Group for tax services and rent, and payment to AOP Services for advisory services.

8.

Estimated cash available for future operating activities

$NZ'000

8.1

Net cash from / (used in) operating activities (item 1.9)

(991)

8.2

Cash and cash equivalents at quarter end (item 4.6)

2,399

8.3*

Unused finance facilities available at quarter end (item 7.5)

0

8.4

Total available funding (item 8.2 + item 8.3)

2,399

8.5**

Estimated quarters of funding available (item 8.4 divided by item 8.1)

2.4

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6

If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1

Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer:

7.

Financing facilities

note: the term "facility' includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

Total facility amount at quarter end

$NZ'000

Amount drawn at quarter end

$NZ'000

7.1

Loan facilities

10,300

9,278

7.2

Credit standby arrangements

7.3

Others (Convertible Notes $NZ 8.5m and Vendor Finance $NZ 0.9m)

9,451

9,451

7.4

Total financing facilities

7.5

Unused financing facilities available at quarter end

0

7.6

Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

7.6

7.1

- $NZ 10,300,000 senior secured loan facility. 9.75% serviceable interest. Maturity date 15th December 2022.

7.3

- $NZ 8,525,454 ($AU 7,917,589) Convertible Notes, or 35,000,000 Notes at $AU 0.22 per Note. Second ranking security over non-property assets of HVM and it's subsidiaries. Capitalised interest rate of 11%, capitalised each six months in arrears. Conversion or redemption by election of each Note holder. At the election of Note holder, will convert into ordinary shares at the lower of $AU 0.20 or a 20% discount to the pricing for the Main Capital Raising per share.

- $NZ 926,000 Vendor Financing on purchase of Waipa Meadows farm per NZ IFRS 9 loan revaluation. Repayment of $NZ 250,000 was made during the quarter, reducing the face value of $NZ 1,500,000 to $NZ 1,250,000.

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Happy Valley Nutrition Ltd. published this content on 21 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 22:57:09 UTC.