Privately held Ittella International, owner of the Tattooed Chef brand of plant-based packaged foods, reported its financial results for the second fiscal quarter of 2020 today. The news sent shares of Forum Merger II Corporation (NASDAQ:FMCI)9.6% higher in 3 p.m. EDT trading. Forum Merger II Corporation is the special purpose acquisition company (SPAC) that plans to take Tattooed Chef public in a reverse-merger IPO sometime this quarter.
So what did Tattooed Chef have to say for itself today? Sales for the fiscal second quarter 2020 more than doubled (up 113%) in comparison to Q2 2019, hitting $34.8 million. Even better, these sales accelerated over Q1 levels in which sales increased 104%.
Tattooed Chef was profitable for the quarter, earning $1.2 million instead of the small net loss it booked a year ago. For the entire first quarter, earnings were an even more robust $7.2 million -- four and a half times what it had earned in last year's Q1.
Heading into Q3 and the much anticipated Q3 merger with Forum Merger II Corporation, Tattooed Chef Creative Director Sarah Galletti boasted that "The Tattooed Chef brand is now, more than ever, being recognized as an innovative, disruptive food company with a long runway for continued growth in sales and profitability," while co-CEO Sam Galletti promised "to meet or exceed our full year Adjusted EBITDA expectation of $17 million."
The Tattooed Chef looks to be heading for its merger and IPO under a full head of steam -- and this, in a nutshell, is why investors in Forum Merger II Corporation are buying today.