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by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index jumped 20.85 points to 734.18 Wednesday. Margot Micallef's Gabriella's Kitchen Inc. (GABY) rose two cents to 38 cents on 1.32 million shares, the highest trading volume the company has ever had in Canada. The company trades on Nasdaq but the daily volume is well under that of Canada. Gabriella's has increased its planned private placement to $20-million, up from $10-million. Each 30-cent unit in the financing will comprise one share and one-half warrant (each whole warrant exercisable at 38 cents for two years). The offering will be for 53.33 million units, worth $16-million and an overallotment option of 13.33 million units worth $4-million.

The financing will provide Gabriella's with much-needed relief. It had a working capital deficit of $4.63-million and cash of only $10,181 as of March 31, 2019. Gabriella's had revenue of $498,343 in the first quarter of 2019, sharply lower than its Q1 2018 revenue of $661,299. The company also lost $2.37-million in Q1 2019, compared with a loss of $970,364 in Q1 2018. The Q1 results do not include what is now by far Gabriella's most substantial source of revenue -- that of recent acquisition Sonoma Pacific Distribution. Gabriella's Kitchen most recently estimated Sonoma's revenue for the first quarter at $9.8-million.

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