Relevium Technologies has signed a non-binding letter of intent (the "LOI") to acquire an American based nutraceutical brand that sells products directly to consumers, primarily through Amazon in the vitamins and dietary supplements category
Relevium Technologies is a publicly traded corporation focused on the acquisition and building of e-retail brands, products and technologies in the health and wellness market.
The transaction value of the acquisition of the American based nutraceutical brand by Relevium is currently estimated at US$1.35 million, which shall be subject to adjustment based upon a multiple of earnings before income taxes.
Subject to the positive outcome of a short due diligence period, the negotiation and execution of a mutually satisfactory definitive acquisition agreement and TSX Venture Exchange approval, management estimates that the transaction should close 30 November, 2017.
Pursuant to regulatory guidelines, further financial details and related fees regarding the acquisition will be disclosed at the closing of the transaction.
The company does not anticipate the need for outside capital to close the transaction as the consideration is expected to consist solely by the issuance of additional equity of the company, which shall be subject to a vesting schedule and associated targets.
The company does not anticipate a new control person will be created as a result of the proposed transaction.
Once closed, it is intended that the acquired assets will be transferred to Relevium and the operations will be integrated into the current operations being managed by the company.
Aurelio Useche, President and CEO of Relevium Technologies, said: "We have been diligently looking at accretive assets to add to our portfolio since the acquisition of BioGanix and we are very pleased to execute another line item from our 2017 guidance laid out on 2 August, 2017."
"Once closed, this transaction will further demonstrate Management's ability to execute on the M&A strategy and should contribute to top line revenue and EBITDA for Fiscal 2018. Operationally speaking we are ready to continue acquiring, integrating and optimising brands. The current M&A pipeline remains very healthy and in line with previously stated numbers. We look forward to concluding more transactions on an aggressive schedule."