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Vancouver, British Columbia–(Newsfile Corp. – June 28, 2022) – Vegano Foods Inc. (CSE: VAGN) (OTCQB: VAGNF) (“Vegano” or the “Company”) is pleased to announce that it has entered into a non-binding letter of intent (“LOI”) dated June 28e2022, pursuant to which Vegano will enter into a share purchase transaction (the “Transaction”) to acquire all of the outstanding share capital of Tality Kombucha (“Tality”).
Brewing authentic kombucha using real roots, fruits, herbs and a well-balanced formulation, Tality has amassed a loyal and growing following for their product in Western Canada. To date, more than 500 wholesalers and restaurants across the country have sold a variety of Tality’s four kombucha flavors, and the brand recently added healthy teas to its product offering.
According to Grandview Research, the global kombucha market size was valued at USD 4.23 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 12.2% from 2022 to 2030.1. This positive trend is fueled by a dramatic shift towards consumers taking a proactive approach to improving their overall health, well-being and longevity.
If successful, Tality will represent Vegano Foods’ second acquisition and mark a crucial step in the evolution of the company‘s healthy beverage division, which includes its recent acquisition of oat milk brand SMPL and its other private label products such as its Greens Blend and proteins. powdered drink mixes.
Vegano continued to shape itself as a provider of healthy food and beverage offerings with a particular focus on its beverage division. To maintain momentum, Vegano will remain focused on developing a vertical distribution model to centralize costs while maximizing gross margin. It will also allow them to grow through the acquisition of popular consumer products, especially beverages that fit well in the market.
Vegano CEO Conor Power says, “Above all else, Tality makes an ethical and incredibly tasty product. Beyond that, their consistent year-over-year growth and expanding distribution make them a fantastic addition to the growing Vegano family of brands. We look forward to introducing them to our loyal customers and expanding their distribution across North America.”
Terms of trade
The Transaction is an arm’s length transaction and, pursuant to the terms of the Letter of Intent, the parties intend to execute a definitive agreement (the “Definitive Agreement”) relating to the Transaction no later than July 15, 2022. , with an expected close by the end of August 2022.
The agreement is subject to a number of conditions precedent, including, but not limited to: (i) the acquisition must be approved by a special majority of Tality shareholders; (ii) the receipt of all consents, orders and approvals, including regulatory approvals and orders, necessary or desirable for the completion of the Acquisition; (iii) performance of due diligence by Vegano; (iv) compliance with applicable securities laws; (v) the acquisition becoming effective before August 31, 2022; and (vi) satisfaction of other customary closing conditions for transactions of a similar nature to the Acquisition.
The acquisition of Tality is not expected to constitute a fundamental change for the Company, nor result in a change of control of the Company, within the meaning of the policies of the Canadian Securities Exchange.
ABOUT VEGANO FOODS INC.
Vegano Foods Inc. is Canada’s first 100% plant-based online marketplace operating in Vancouver. Founded in March 2020, Vegano helps make healthy plant-based eating more accessible to Canadians, empowering them to take veganism beyond Meatless Mondays and Vegan. Vegano sources high quality products to make herbal shopping easy on one website. For more information, visit www.veganofoods.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Conor Power, CEO and Director
CSE has neither approved nor disapproved of the contents of this press release. CSE does not accept responsibility for the adequacy or accuracy of this release.
This press release contains statements and information which, to the extent that they are not historical facts, constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is based on management’s reasonable assumptions, estimates, analyzes and opinions made in light of its experience and perception of trends, current conditions and anticipated developments, as well as other factors that management considers relevant and reasonable in the circumstances on the date such statements are made, but which may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the information. forward-looking statements, including, but not limited to, statements relating to the financial performance, business development and results of operations of the Company. Accordingly, readers should not place undue reliance on such forward-looking information. Further, any forward-looking statement speaks only as of the date such statement is made. New factors emerge from time to time and it is not possible for the management of the Company to foresee all of these factors and to assess in advance the impact of each of these factors on the Company’s business or the the extent to which any factor, or combination of factors, could cause actual results to differ materially from those contained in the forward-looking statements. The Company undertakes no obligation to update forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unforeseen events, except as required by law. requires, including securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129394