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US Capital Advises on $5MM Equity Raise for Food by Rail

San Francisco-based private financial group supports the launch and growth of a nationwide environmentally focused logistics and food transportation company.

San Francisco-based private financial group supports the launch and growth of a nationwide environmentally focused logistics and food transportation company.

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<str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> <str<strong>on</strong>g>Advises</str<strong>on</strong>g> <strong>on</strong> <strong>$5MM</strong> <strong>Equity</strong> <strong>Raise</strong> <strong>for</strong> <strong>Food</strong> <strong>by</strong> <strong>Rail</strong><br />

San Francisco-based private financial group supports the launch and growth of a nati<strong>on</strong>wide<br />

envir<strong>on</strong>mentally focused logistics and food transportati<strong>on</strong> company.<br />

San Francisco, CA, <str<strong>on</strong>g>US</str<strong>on</strong>g>A., November 30, 2017 -- <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Partners Inc. (“<str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g>”) has<br />

been engaged <strong>by</strong> <strong>Food</strong> <strong>by</strong> <strong>Rail</strong> Logistics Holdings, Inc. (“<strong>Food</strong> <strong>by</strong> <strong>Rail</strong>”) as its exclusive financial<br />

adviser <strong>for</strong> a $5 milli<strong>on</strong> Series-A preferred equity raise <strong>for</strong> the firm. <strong>Food</strong> <strong>by</strong> <strong>Rail</strong> will use the new<br />

financing to fund the launch, growth, and development of the company.<br />

Headquartered in San Francisco, <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> is a full-service private financial group committed to<br />

impact investing. Through its investment bank affiliate, <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Global Securities, LLC, the firm<br />

provides private placement services and has wide distributi<strong>on</strong> <strong>for</strong> debt and equity private<br />

placements.<br />

<strong>Food</strong> <strong>by</strong> <strong>Rail</strong> intends to provide state-of-the-art refrigerated boxcars <strong>for</strong> transporting food and<br />

beverages primarily <strong>by</strong> rail with a unique stacking system to use more cube capacity. According to a<br />

recent report, <strong>on</strong> average trains are four times more fuel efficient than trucks. The report goes <strong>on</strong> to<br />

say that moving freight <strong>by</strong> rail instead of truck lowers greenhouse gas emissi<strong>on</strong>s <strong>by</strong> 75%. Finally,<br />

trains reduce highway gridlock and emissi<strong>on</strong>s of particulate matter and nitrogen oxides.<br />

Marcus S. Kostolich, Founder, President and CEO of <strong>Food</strong> <strong>by</strong> <strong>Rail</strong>, commented: “We are entering a<br />

multi-billi<strong>on</strong>-dollar transportati<strong>on</strong> and logistics market <strong>for</strong> frozen and refrigerated protein, produce,<br />

packaged foods, and beverage as a third-party logistics provider with refrigerated boxcars and<br />

origin and destinati<strong>on</strong> trucking service in North America. We approached <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> to raise $5<br />

milli<strong>on</strong> pre-revenue funding to launch the company and begin operati<strong>on</strong>s starting January 2018. We<br />

were extremely pleased with the first-class service, process, and results.”<br />

“We are delighted to be assisting <strong>Food</strong> <strong>by</strong> <strong>Rail</strong> with its financing needs to launch and develop this<br />

nati<strong>on</strong>wide envir<strong>on</strong>mentally focused business,” said Jeffrey Sweeney, Chairman and CEO at <str<strong>on</strong>g>US</str<strong>on</strong>g><br />

<str<strong>on</strong>g>Capital</str<strong>on</strong>g>. “The opportunity to participate in <strong>Food</strong> <strong>by</strong> <strong>Rail</strong>’s $5 milli<strong>on</strong> Series-A financing raise is now<br />

open to eligible investors through our digital investment plat<strong>for</strong>m at www.uscgs.com, which offers a<br />

curated selecti<strong>on</strong> of private placement opportunities.”<br />

About <strong>Food</strong> <strong>by</strong> <strong>Rail</strong>:<br />

Formed in May 2017, <strong>Food</strong> <strong>by</strong> <strong>Rail</strong> Logistics Holdings, Inc. is a logistics and transportati<strong>on</strong><br />

company <strong>for</strong> frozen and refrigerated protein, produce, packaged food, and beverages. The company<br />

will be operating as a third-party logistics provider (3PL) of refrigerated boxcars (reefers), operating<br />

<strong>on</strong> railroads nati<strong>on</strong>wide. <strong>Food</strong> <strong>by</strong> <strong>Rail</strong>’s visi<strong>on</strong> is that <strong>by</strong> using its services, producers, growers, and<br />

buyers will benefit from transporting large volumes (up to four truckloads per refrigerated boxcar)<br />

of perishable freight, faster, at costs that may be 10% or more below competitive highway<br />

transportati<strong>on</strong>, with a lower carb<strong>on</strong> footprint, over greater distances. <strong>Food</strong> <strong>by</strong> <strong>Rail</strong> plans to begin<br />

operati<strong>on</strong>s in January 2018.<br />

About <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Partners Inc:<br />

Since 1998, <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Partners Inc. has been committed to providing small and lower middle<br />

market businesses and investors with sophisticated debt, equity, and investment opportunities<br />

usually available <strong>on</strong>ly to larger middle market companies and instituti<strong>on</strong>al investors. The firm<br />

manages direct investment funds and provides wealth management and M&A services. Operating<br />

with its registered broker dealer affiliate, <str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Global Securities, LLC, the firm acts as a<br />

licensed placement agent, and collaborates closely with its peers in professi<strong>on</strong>al banking and<br />

investment advisory.


To learn more, email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or<br />

call (415) 889-1010.<br />

C<strong>on</strong>tact:<br />

Vanessa Guajardo<br />

<str<strong>on</strong>g>US</str<strong>on</strong>g> <str<strong>on</strong>g>Capital</str<strong>on</strong>g> Partners Inc<br />

555 M<strong>on</strong>tgomery Street, Suite 1501<br />

San Francisco, CA 94111<br />

415-889-1010<br />

media@uscapitalpartners.net<br />

http://www.uscapitalpartners.net

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