VANCOUVER, BC, Jan. 25,
2023 /CNW/ - Simply Better Brands Corp.
("SBBC" or the "Company") (TSXV: SBBC) (OTCQB: PKANF)
is pleased to provide a corporate update concerning its corporate
initiatives.
Branding Earnout Agreement
The Company announces today that it has entered into a Branding
Earnout Agreement dated January 25,
2023 (the "Agreement") with a group of individual
rightsholders each of whom are at arm's length to the Company, to
advance "Vibez", a new brand of Keto products in the direct to
consumer market in the United
States (the "Brand"). Pursuant to the Agreement, the
Company has partnered with industry experts to advance the
Brand.
The global ketogenic market in 2019 was USD$9.57B, with a planned compound annual growth
rate (CAGR) of 5.5% from 2020-2027, per Grandview Research
Ketogenic Diet Market Size Industry Report, 2020-2027. SBBC intends
to capitalize on this opportunity by launching the Brand in the US
market in 2023. Major progress has been made to date as the Brand
has achieved sales of USD$1.4 million
in the first two months of operation.
Kathy Casey, CEO of SBBC said:
"Today, Simply Better Brands operates in three verticals:
plant-based wellness, clean ingredient food and beverage, and next
generation skincare. Although our PureKana brand is already a Top
10 brand in the category, we continue to see wellness opportunities
in consumer need states of focal acuity, recreation, and weight
management, hence, the entry of the Vibez brand. Our Q4 2022 launch
has exceeded our expectations and we envision Vibez contributing
significantly to our continued category and channel growth in
2023".
Under the terms of the Agreement, the Company will make an
initial payment of $250,000 in common
shares of SBBC ("Common Shares"), at a price per share
$0.32. SBBC may also make bi-monthly
earnout payments in the amount of $187,000, if the Brand achieves certain sales
targets set out in the Agreement (the "Earnout Payments").
Sales in the Agreement related to the milestone payments over 24
months total USD $14.98 million
(approximately CAD $20 million). The
Earnout Payments are payable in cash or Common Shares, at a price
per Common Share equal to the higher of (i) the five day volume
weighted average trading price of the Common Shares on the TSX
Venture Exchange, or (ii) $0.32. SBBC
may issue up to a maximum of $2,250,000 in cash or Common Shares, at the
Company's discretion, over the next 2 years pursuant to the Earnout
Payments.
SBBC will retain exclusive ownership of all of the goodwill
associated with the Brand, its sales revenue, its trademarks and
name.
The Agreement and payments contemplated therein remain subject
to the review and approval of the TSX Venture Exchange.
Option and RSU Grants
The Company also announces that today it has granted an
aggregate of 475,000 stock options ("Option") and 975,000
restricted share units ("RSU") to certain directors,
officers and consultants of the Company under the Company's equity
incentive plan and stock option plan, respectively. Each Option has
an exercise price of $0.27 and is
exercisable for a period of five years from the date of grant into
one common share of the Company per Option. The Options and RSUs
will each will vest over two years from date of grant. Vesting of
the Options and RSUs are subject to acceleration in certain events
in accordance with policies of the TSX Venture Exchange.
The RSU and Option grants are subject to all necessary
regulatory approval.
About Simply Better Brands Corp.
Simply Better Brands Corp. leads an international omni-channel
platform with diversified assets in the emerging plant-based and
holistic wellness consumer product categories. The Company's
mission is focused on leading innovation for the informed
Millennial and Generation Z generations in the rapidly growing
plant-based, natural, and clean ingredient space. The Company
continues to focus on expansion into high-growth consumer product
categories including CBD, plant-based food and beverage, and the
global pet care and skin care industries. For more information on
Simply Better Brands Corp., please visit:
https://www.simplybetterbrands.com/investor-relations.
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 Information
Certain statements contained in this news release constitute
"forward-looking information" and "forward looking statements" as
such terms are used in applicable Canadian securities laws.
Forward-looking statements and information are based on plans,
expectations and estimates of management at the date the
information is provided and are subject to certain factors and
assumptions, including, among others, that the Company's financial
condition and development plans do not change as a result of
unforeseen events, the impact of the COVID-19 pandemic, the
regulatory climate in which the Company operates, and the Company's
ability to execute on its business plans. Specifically, this news
release contains forward-looking statements relating to, but not
limited to: the launch of the Brand, completion of the initial
payment under the Agreement, the Earnout Payments and SBBC's
continued ownership of the Brand, statements relating to the
successful closing of the Offering and anticipated timing thereof
and the intended use of proceeds.
Forward-looking statements and information are subject to a
variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking statements and information.
Factors that could cause the forward-looking statements and
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, ability to obtain
necessary regulatory approvals for the transaction, as well as the
other risks and uncertainties applicable to the CBD or broader
wellness industries and to the Company, and as set forth in the
Company's annual information form available under the Company's
profile at www.sedar.com.
There is no representation by the Company that actual results
achieved will be the same in whole or in part as those referenced
in the forward-looking statements and the Company does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities law.
SOURCE Simply Better Brands Corp