First Acquisition for Wholly Owned SetPoint
Beverages Business Unit
MONTREAL, Feb. 5, 2020 /CNW/ - Mondias Natural Products
Inc. (TSXV: NHP) (the "Company" or
"Mondias") specializing in evidence-based natural products
for the healthcare and bio-agriculture markets today announces that
the Company has signed a Binding Letter of Intent (LOI) to acquire
a Quebec, Canada startup beverage
company. This will represent the first functional beverage
acquisition for the Company's wholly owned SetPoint Beverages
Business Unit. Functional beverages are low in sugar,
non-alcoholic beverages that comprise of vitals such as vitamins,
minerals, herbs, cannabinoids, prebiotics, probiotic bacteria and
fruit or vegetable juices which are invaluable products in
maintaining good health and vitality.
![Logo: Mondias Natural Products (CNW Group/Mondias Natural Products Inc.) Logo: Mondias Natural Products (CNW Group/Mondias Natural Products Inc.)](https://mma.prnewswire.com/media/1086442/Mondias_Natural_Products_Inc__Mondias_Signs_Binding_LOI_to_Acqui.jpg)
Once completed, Mondias will acquire all the assets of Érablier
Inc. a Québec based enterprise. Érablier has developed a
premium product made from the organic, and pure processed water
obtained from sugar maple tree sap (acer
saccharum). The beverage will go through extensive market
testing in the coming months. In maple syrup water industry
reports, data shows that the demand for maple water has grown to
exceed 16M Liters in 2018. It is
suggested that maple water drinks may follow the same demand curve
as that seen for coconut water. According to an industry
report, the global coconut water market is valued at USD 2.5B in 2017 and is expected to reach
USD 9.0B by the end of 2024, growing
at a CAGR of 19.93% between 2017 and 2024.
Mondias CEO Dr. Patrick Frankham
stated that "This strategic acquisition represents an excellent
opportunity to enter the vibrant health and wellness beverage space
using a natural and organic product obtained from Québec." Dr
Frankham also added that "maple water is a unique natural product
that is harvested by sophisticated and large-scale methods from
which we obtain our starting material to create natural products
for consumers."
The transaction is subject to Mondias due diligence, Board and
regulatory approval. The purchase price consists of a $75,000 cash payment ($50,000 on closing and a further $25,000 payment upon the completion of the
technology transfer) and a 4% royalty of the annual net sales (as
defined in the LOI) subject to a maximum $1,000 000 aggregate royalty payment. It is
contemplated that the royalty payment would be paid as to 75% in
cash and 25% in common shares of Mondias.
About Mondias Natural Products Inc.
Mondias
specializes in the commercialization and development of
evidence-based botanical products for the healthcare,
bio-agriculture and organic markets. The company sells both oral
and topical botanical agents to help manage unmet medical needs
through its Holizen Laboratories division. Mondias is also
developing botanical-based specialty fertilizers for use on
household plants, lawns and golf courses and in urban gardens,
nurseries and greenhouses, in collaboration with McGill's Faculty
of Agricultural and Environmental Sciences.
For more information, visit: www.mondias.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-looking statements
Some statements in this
release may contain forward-looking information. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding potential acquisitions and
financings) are forward-looking statements. Forward-looking
statements are generally identifiable by the use of the words
"may", "will", "should", "continue", "expect", "anticipate",
"estimate", "believe", "intend", "plan" or "project" or the
negative of these words or other variations on these words or
comparable terminology. Forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the
Company's ability to control or predict, that may cause the actual
results of the Company to differ materially from those discussed in
the forward-looking statements. Factors that could cause actual
results or events to differ materially from current expectations
include the Company's inability to obtain sufficient financing to
execute its business plan; competition; regulation; anticipated and
unanticipated costs and delays; the success of the Company's
research and development strategies; the ability to obtain orphan
drug status; the applicability of the discoveries made; the
successful and timely completion and uncertainties related to the
regulatory approval process; the timing of clinical trials; the
timing and outcomes of regulatory or intellectual property
decisions; and other risks disclosed in the Company's public
disclosure record on file with the relevant securities regulatory
authorities. Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in forward-looking
statements, there may be other factors that cause results or events
not to be as anticipated, estimated or intended. Readers should not
place undue reliance on forward-looking statements. The
forward-looking statements in this news release are made as of the
date of this news release, and the Company does not undertake any
obligation to publicly update them to reflect new information or
subsequent events or otherwise except as required by applicable
securities legislation.
SOURCE Mondias Natural Products Inc.