Akseli Herlevin’s Street Food plans to go public – plans to merge with Rush Factory

Event organizer Rush Factory announces that he has signed a preliminary agreement on the merger, a well-known television chef Akseli Herlevin of the Street Food Group with.

The merger is planned to be implemented in such a way that Rush Factory acquires the entire stock of Street Food through a share exchange.

The realization of the merger is accompanied by conditions that must be implemented before the merger or immediately in connection with the merger.

One of the conditions is that Rush Factory sells its property in Masku for at least 750,000 euros. In addition, Street Food must organize a paid share issue, in which it collects new equity capital of at least 300,000 euros.

The third significant condition is that Niemelä Markka & Ropo and Markus Niemelä converted their undisputed claims from Rush Factory into shares.

Markus Niemelä is Rush Factory’s largest owner with 18.39 percent ownership. He also serves as the chairman of the company’s board.

Through the kitchen to the stock market

If the merger takes place, Rush Factory will issue a total of 9,236,976 new shares at a subscription price of EUR 0.3028 per share.

7,886,250 of the new shares will be directed to current Street Food shareholders. Street Food’s shareholders would receive approximately 68 percent of the company’s shares.

Of the shares, 855,350 are used to convert Niemelä Markka & Ropo Oy’s undisputed claims from the company, and 495,376 shares are used to convert Markus Niemelä’s undisputed claims.

Rush Factory estimates that the entire arrangement will be implemented by the end of this year at the latest.

Rush Factory, known for color obstacle course events, has been doing poorly for a long time. For example, the company is in debt and has had to cancel its events.

Street Food Group is known for Naughty Brgres

Street Food originated from the Naughty Brgr restaurant founded by its CEO Herlev in 2015. Over the years, the group has expanded to more offices.

In addition to restaurants, it has a production company, Naughty Studios, which produces, for example, the TV series Burgerimiehet. Naugthy Retail is mainly developed by a trading group Miscarriage consumer products sold in retail.

According to Rush Factory’s press release, the company’s current business would initially focus on food tours in Finland, which have been implemented together with Street Food.

The first of these would be the Burgermiehet street food event to be held in late spring 2025, which is planned to be organized in ten locations.

After this, the aim is to produce food and drink events several times a year, and later also internationally, Rush Factory plans.

During the end of the year, a new strategy will be drawn up for the merging new company, a company prospectus will be published to describe the newly formed group, a new board of directors will be chosen for the company and the group will also be renamed.

“Perfectly combines the core competence of both companies”

Last year, Rush Factory had a turnover of 3.2 million euros without any mentionable operating income. According to Alma Business Insights, Street Food had a turnover of 10.7 million euros with a loss of 189,254 euros.

According to Rush Factory’s press release, due to Street Food’s strategy change this year and the closure of poorly profitable brick-and-mortar restaurants, turnover will decrease from the level of previous years.

However, profitability is believed to remain at the same level or improve.

“Rush Factory has been looking for a solution and a new direction for the development of the company for a long time after the challenges caused by the corona years,” Rush Factory’s board chairman Markus Niemelä commented in the press release.

“Discussions with Street Food Group Oyj have been fruitful and the planned new entity perfectly combines the core expertise of both companies. We are very excited about the emerging new company and the opportunities it brings.”