Grove Inc. Planning Entry Into Nutraceuticals with Vitamedica Agreement
June 30 2021 - 8:00AM
via NewMediaWire -- Grove Inc. (the “Company” or
“
Grove”) (NASDAQ: GRVI), the Nevada based company
redefining the way hemp is bought, produced, and sold, is pleased
to announce a strong potential entrance into the nutraceutical
space with a non-binding letter of intent to acquire Vitamedica, a
leading online seller of supplements for Surgery + Recovery, Skin +
Beauty, and Health + Wellness. While the parties plan to negotiate
in good faith a definitive binding agreement over the next 30 days,
there is no assurance that such an agreement will materialize, or
that any acquisition transaction will ultimately close. In
addition, the parties will need to complete extensive due diligence
to their satisfaction. It is anticipated that if the acquisition
does ultimately close, it will be immediately accretive to Grove,
being both top line and net income positive for the company.
The potential transaction could combine Grove’s innovation in
production and automated low-cost manufacturing with the extensive
product line of Vitamedica, which has been recommended by thousands
of doctors to serve over 1 million patients. With this letter of
intent, the Company has taken direct aim at the vitamin +
nutraceutical market in order to address health + wellness needs of
all consumers. Vitamedica stood out, not only because of its
reputation and testimonials from consumers, but because of the 25
years of clinical use and the products being formulated by
physicians.
David H. Rahm, MD, the founder of Vitamedica and practicing
anesthesiologist took the approach of focusing on disease
prevention rather than those trained to focus on disease
treatment. “I founded VitaMedica to ensure that my patients
were able to obtain high-quality nutritional supplements. After
providing our products only through plastic surgeons, cosmetic
dermatologists, and medical spas for over a decade, we’re pleased
to offer our recovery, skin health and weight management products
to consumers directly on our website.” Vitamedica actively
sells their products to consumers as well as doctors and surgeons
who offer products to their patients, creating a full circle
distribution channel with everyday people and the medical
field.
Strategic HighlightsThe potential transaction
could create a diversified health and wellness portfolio with the
entrance into nutraceuticals for Grove, which has already
established itself as a leader in the production and manufacturing
of hemp-based products.
- Product Synergy
- Grove has established itself as a leader with in-house
manufacturing and production of its own products and continues to
increase capacity with investments in automation.
- The company aims to take advantage of the growing demand in the
vitamin-gummy market with a “global forecast to 2025 the global
gummy vitamins market size is estimated to be valued at USD 5.9
billion in 2020 and projected to reach USD 10.6 billion by 2025,
recording a CAGR of 12.5%” https://www.reportlinker.com/
- Vitamedica has 25 years of research and development in
formulating an extensive product line that is recommended by
doctors and surgeons, with countless positive reviews from
individual customers.
- Medical Leadership with David H. Rahm MD.
- If the potential transaction ultimately closes, Grove will
absorb the network and reputation that Dr. Rahm has, and provide
Grove with a close connection to thousands of doctors and over 1
million consumers, laying the groundwork for future partnerships in
the medical and therapeutic space for the use of Grove’s expansive
hemp-based products.
- Potentially combining Vitamedica’s scientific approach
to product creation with Grove’s nationwide distribution
channels
- Both companies go through rigorous testing procedures to assure
product quality and transparency for customers.
- Grove could potentially benefit from the decades of experience
Vitamedica has formulating products while Vitamedica could
potentially gain instant exposure to the vast distribution network
Grove has developed.
About Grove
Grove, Inc. is in the business of developing, producing,
marketing and selling raw materials, white label products and end
consumer products containing the industrial hemp plant extract,
Cannabidiol (“CBD”). The Company sells to numerous consumer markets
including the botanical, beauty care, pet care and functional food
sectors. It seeks to take advantage of an emerging worldwide trend
to re-energize the production of industrial hemp as well as
vitamins and to foster its many health and wellness uses for
consumers.
About Vitamedica
For 25 years, VitaMedica nutritional supplements have been
recommended by thousands of doctors to serve over one-million
patients — to support recovery, promote skin health, maintain a
healthy weight and fuel overall wellness. As a respected leader in
the beauty and wellness space, our premium-quality products are
guided by science and proven through clinical experience.
Forward-Looking Statements
This press release contains statements that constitute
“forward-looking statements,” including with respect to the
Company’s initial public offering. No assurance can be given that
the offering will be completed on the terms described, or at all.
Forward-looking statements are subject to numerous conditions, many
of which are beyond the control of the Company, including those set
forth in the Risk Factors section of the Company’s registration
statement and preliminary prospectus for the offering filed with
the SEC. Copies are available on the SEC’s website, www.sec.gov.
The Company undertakes no obligation to update these statements for
revisions or changes after the date of this release, except as
required by law.
Company Contact
Andrew NorstrudEmail: investorinfo@cbd.ioPhone: (702)
332-5591
Investor Relations Contact
TraDigital IRJohn McNamaraEmail: john@tradigitalir.comPhone:
(917) 658-2602
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