UPDATE - Synergy CHC Corp Acquires "Flat Tummy Tea," an
Australian Company With Significant Social Media Presence
WESTBROOK, ME-(Marketwired - Nov 17, 2015) - Synergy CHC
Corp (OTCQB: SNYR), a consumer health care company, today announced
it has acquired a 100% ownership stake in Nomad Choice PTY LTD, an
Australian company who owns the brand Flat Tummy Tea, which
has significant social media presence.
Under the terms of the agreement, Synergy purchased of all the
issued and outstanding capital stock of Flat Tummy Tea for a total
purchase price of $10,000,000, comprised of $4,000,000 (Australian
dollars, AUD) in cash, 3,571,428 shares of its common stock, and
possible earn-out payments of up to $3,500,000 (AUD) in aggregate
if certain EBITDA thresholds are met as of June 30, 2016.
"We are excited to be partnering with Synergy through this
acquisition," said Tim Polmear, Director at Flat Tummy Tea. "Over
the last few years, we've developed an innovative, unique and very
effective way to reach targeted consumers through social media. We
see great potential for Synergy's existing and future brands to tap
into this intellectual property and extend their consumer reach
into the online world. On top of this, Synergy's expertise and
resources to take Flat Tummy Tea into a retail environment make
this a great match."
"We are pleased to add another unique offering to our portfolio
which now gives Synergy global reach across multiple distribution
platforms. It is consistent with the company's strategy to grow
both organically and by further acquisition. We are deliberately
seeking to generate shareholder value through the addition of
products that help improve the lives of customers while leveraging
our existing distribution relationships. We will continue to be
active on the acquisition trail," said Jack Ross, CEO of
Synergy.
About Flat Tummy Tea
Flat Tummy Tea's uniquely formulated two-step herbal detox tea
works to naturally help speed metabolism, boost energy and reduce
bloating to flatten your tummy. It's currently sold exclusively
online to a global, 20-30 year old female, predominantly American
market.
Since being founded in 2013, Flat Tummy Tea has grown
rapidly, largely attributed to the strength of their branding and
their innovative and effective use of social media. Their secret is
a very specific process and ROI based algorithm used on various
online platforms. To date, Flat Tummy Tea has built a targeted
social media following of over 500,000, many of whom are now
customers.
Flat Tummy Tea has proven month on month growth since inception
at a rate of over 400% annually.
Flat Tummy Tea now has over 3000+ positive written reviews on
their website, flattummytea.com, or visit their Instagram page.
Go Capital Pty Ltd was the corporate advisor for Flat Tummy Tea
and its shareholders in this transaction. Derek Gerrard, Director
of GoCap, said, "Both Synergy and Flat Tummy Tea worked with a
can-do attitude through this transaction. This demonstrated the
capability of both teams that will now create a strong combination
to accelerate the growth performance of the business moving
forward."
About Synergy CHC Corp. Synergy CHC Corp. is a consumer health
care company that is in the process of building a portfolio of
best-in-class consumer product brands. Synergy's strategy is to
grow its portfolio both organically and by further acquisition.
Synergy's diversified portfolio now includes FOCUSfactor, Neuragen,
Hand MD, UrgentRx and Flat Tummy Tea For more information, please
visit www.synergychc.com.
About FOCUSfactor "Another Synergy Brand" FOCUSfactor is sold at
America's leading retailers such as Costco, Sam's Club,
Wal-Mart, BJ's, Walgreens and The Vitamin Shoppe. FOCUSfactor,
America's leading brain health supplement, is a nutritional
supplement that includes a proprietary blend of brain supporting
vitamins, minerals, antioxidants and other nutrients. In December
2012, the United States Patent and Trademark Office issued US
Patent 8,329,227 covering FOCUSfactor's proprietary formulation
"for enhanced mental function." The issuance of the patent marked
one of the few times a patent has been issued for a nationally
branded nutritional supplement. FOCUSfactor is clinically tested
with results demonstrating improvements in focus, concentration and
memory in healthy adults. www.focusfactor.com
About Neuragen "Another Synergy Brand" Neuragen is a topical
product that works directly at the site of the pain as opposed to
oral products. Neuragen reduces the spontaneous firing of damaged
peripheral nerves. By calming these firings at the source, Neuragen
is clinically shown to reduce shooting and burning pains quickly
and without the side effects of orally taken medications. This is
in part due to the small lipophilic molecules found in Neuragen
which rapidly carry the active ingredients through the rough outer
layer of the skin to the site of the pain. Neuragen is available
over the counter in most local pharmacies either in the diabetic
section or the analgesic (pain) section. For more information,
please visit www.neuragen.com.
About Hand MD "Another Synergy Brand" Hand MD is the world's
first anti-aging skincare line formulated specifically for the
hands. Hands reveal a woman's true age and the rejuvenation of
the hand has become women's #1 aging concern. Developed by
Kara Harshbarger and renowned celebrity dermatologist Dr. Alex
Khadavi, Hand MD's extensive clinical trials show significant
improvement in the appearance of fine lines and wrinkles, skin
hydration, hyper-pigmentation and radiance. HAND MD launched
on QVC and sold out in an astonishing 5
minutes. www.hand-md.com
About UrgentRx "Another Synergy Brand "
UrgentRx produces a line of fast-acting, portable OTC
medications that provide right now relief for today's busy,
on-the-go consumer. UrgentRx Fast Powders are innovative,
fast-acting flavored powder medications in patented credit
card-sized packets. They can be taken without water, providing
immediate relief for a wide variety of everyday ailments, whenever
and wherever they strike. UrgentRx produces medications to
treat allergy attacks, headaches, aches and pains, heartburn, and
upset stomach, as well as a heart attack first aid that has helped
save multiple lives. For additional information, please visit
www.urgentrx.com.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are subject to risks
and uncertainties. All statements, other than statements of
historical facts, regarding management's expectations, beliefs,
goals, plans or Synergy's prospects should be considered
forward-looking. Readers are cautioned that actual results may
differ materially from projections or estimates due to a variety of
important factors, including: Synergy's ability to integrate the
Flat Tummy Tea, UrgentRx and Hand MD product lines into its current
operations; Synergy's dependence on third parties for its research
and development, manufacturing and distribution functions;
Synergy's' dependence on its license relationships; the risks and
uncertainties associated with Synergy's ability to manage its
limited cash resources; obtaining additional financing to support
Synergy's operations; protecting the intellectual property
developed by or licensed to Synergy; and Synergy's ability to build
its operations to support its business strategy and promote its
products. These and other risks are described in greater detail in
Synergy's filings with the SEC, copies of which are available free
of charge at the SEC's website (www.sec.gov) or upon request from
Synergy. Synergy may not actually achieve the goals or plans
described in its forward-looking statements, and investors should
not place undue reliance on these statements. Synergy assumes no
obligation and does not intend to update these forward-looking
statements, except as required by law.
Contact Information
Contact: Jack Ross Chairman / CEO Synergy CHC Corp
Jack@synergychc.com 615-939-9004
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