TORONTO, Jan. 31, 2019 /CNW/ - GreenSpace Brands Inc.
(TSXV:JTR) ("GreenSpace") and Agrifoods International Cooperative
Ltd. ("Agrifoods") are pleased to announce the sale by Greenspace
of the Rolling Meadow Dairy brand and business (excluding the egg
business) ("Rolling Meadow") to Agrifoods' subsidiary; Organic
Meadow Limited Partnership ("Organic Meadow"). This sale further
cements Agrifoods' place in the Canadian dairy industry as it
brings Canada's strongest brand in
the grass fed dairy industry into Agrifoods' family of brands,
complementing Organic Meadow, a leading brand in the Canadian
organic dairy industry.
The acquisition of the business is for upfront consideration of
$1.8 million, including working
capital considerations, in addition to a royalty based on revenue
over 4 years. The transaction represents guaranteed
consideration of approximately 0.6x sales, with an opportunity for
total consideration of approximately 1x sales, including the
royalty.
"We're thrilled to be selling the Rolling Meadow brand to
Agrifoods and the Organic Meadow team." said Matthew von Teichman, CEO of GreenSpace Brands.
"Organic Meadow has been a fantastic partner in the success of
Rolling Meadow since inception, as our primary co-packer of Rolling
Meadow products, and coupled with their deep understanding of the
dairy market in Canada, we expect
the Organic Meadow team to be able to take what we started with
Canada's first and largest Grass
fed dairy brand, and bring it to a new level for the benefit of
Canadian dairy consumers."
"GreenSpace has done a wonderful job in pioneering and building
the grass fed dairy market in Canada through their Rolling Meadow brand, and
we're very excited to continue to expand the breadth and reach of
Rolling Meadow products across Canada" said Maheb Nathoo, CEO of Agrifoods
International Cooperative Ltd. "Agrifoods' subsidiary, Organic
Meadow was one of the early pioneers in the organic dairy market
and now with the acquisition of Rolling Meadow, we have a
tremendous opportunity to grow our market leading positions in
organic and grass-fed dairy by offering consumers more options for
authentic, farmer owned, Canadian dairy products."
About Greenspace
GreenSpace is a Canadian-based brand ideation team that
develops, markets and sells premium natural food products to
consumers across North America.
GreenSpace owns Life Choices, convenience meat products made with
grass fed and pasture raised meats without the use of added
hormones and antibiotics, Love
Child, a producer of 100% organic food for infants and
toddlers made with the purest, natural and most nutritionally-rich
ingredients, Central Roast, a clean snacking brand featuring a wide
assortment of nut and seed mixes, Kiju, the Canadian market leader
in the shelf stable organic juice segment, Cedar, the leaders in
the Canadian Cold Press Juice category and the most recently
acquired brand, Go Veggie, one of the leaders in the US plant based
dairy market. All brands are wholly owned and retail in a variety
of natural and mass retail grocery locations across Canada.
About Agrifoods Cooperative
Agrifoods International Cooperative Ltd. has proudly been in
business for over a century and has grown to become one of
Canada's leading cooperatives with
over 2,800 members. The traditional values upon which Agrifoods was
founded underlie its commitment for continual innovation in order
to serve its valued customers' and consumers' changing needs.
Agrifoods' brands – Organic Meadow, Meadowfresh, Earth's Own and
Happy Planet – employ over 400 people and have become leaders in
the health and wellness industry, producing a wide range of
premium, on-trend, wholesome foods and beverages available from
coast to coast. www.agrifoods.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are
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"objective", "continuous", "ongoing", "estimate", "outlook",
"expect", "may", "will", "project", "should" or similar words,
including negatives thereof, suggesting future outcomes. Management
of the Emblem and GreenSpace (collectively, the "Companies")
believe the expectations reflected in such forward-looking
statements are reasonable as of the date hereof but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
Various material factors and assumptions are typically applied in
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in forward-looking statements. . The forward-looking statements in
this release are based on certain assumptions and involve known and
unknown risks and uncertainties and other factors that could cause
actual events to differ materially from current assumptions and
expectations, including, but not limited to, that: the conditions
to the completion of the investments and supply agreement
contemplated herein will be satisfied, the investments and supply
agreement contemplated herein will be completed on the terms
substantially described in this release, that applicable
regulatory, exchange and third party approvals will for the
transactions described herein will be obtained, and that customers
will respond positively to the Companies' new product lines. Those
material factors and assumptions are based on information currently
available to the Companies, including data from publicly available
governmental sources as well as from market research and industry
analysis and on assumptions based on data and knowledge of this
industry which the Companies believe to be reasonable. However,
although generally indicative of relative market positions, market
shares and performance characteristics, such data is inherently
imprecise. While the Companies are not aware of any misstatement
regarding any industry or government data presented herein, the
anticipated recreational cannabis industry involves risks and
uncertainties and is subject to change based on various
factors.
Forward-looking statements are not a guarantee of future
performance and are subject to and involve a number of known and
unknown risks and uncertainties, many of which are beyond the
control of the Companies, which may cause actual performance and
results to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks identified in GreenSpace's March 31, 2018 Management's Discussion and
Analysis, which have been filed with the Canadian Securities
Administrators and available on www.sedar.com. Any forward-looking
statements are made as of the date hereof and, except as required
by law, the Companies assume no obligation to publicly update or
revise such statements to reflect new information, subsequent or
otherwise.
Neither the Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this Press
release.
SOURCE GreenSpace Brands Inc.