TIDMSEED
Seed Innovations Limited
05 October 2021
Seed Innovations Ltd / AIM: SEED / Sector: Closed End
Investments
5(th) October 2021
SEED Innovations Limited ("SEED" or the "Company")
Investee Company Update: Yooma Wellness
SEED Innovations Ltd, the AIM quoted company investing in fast
growing and industry leading businesses with a focus on the medical
cannabis, health and wellness space, is pleased to note an
announcement by its portfolio company, Yooma Wellness Inc.
('Yooma').
Yooma has completed the acquisition of Vertex Co., Ltd., a
Tokyo-based wellness business, which has its own range of
proprietary wellness products. In line with Yooma's strategic plan,
the acquisition strengthens its current operating subsidiaries
portfolio, enhances its range of product lines, expands both its
distribution network and customer base, and provides access to the
Japanese and wider Asian markets.
SEED has a holding of 4,427,609 ordinary shares in Yooma
representing approximately 4.5% of Yooma's issued share
capital.
The announcement by Yooma is set out below without material
changes or adjustments:
Yooma Wellness Acquires Japanese Wellness Business for
US$12,000,000
The acquisition of Tokyo-based Vertex Co.'s wellness products
business adds diverse new product offerings to Yooma's portfolio
and provides a solid foothold in the Japanese marketplace
TORONTO, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Yooma Wellness Inc.
("Yooma") (CSE: YOOM, AQSE: YOOM), a Toronto-based vertically
integrated global wellness platform that develops and markets a
portfolio of wellness brands, announced today that it has completed
the acquisition of Tokyo-based Vertex Co., Ltd. ("Vertex"). The
transaction is valued at US$12,000,000 and was completed after
market close on Friday, October 1.
Vertex sells a range of proprietary wellness products in Japan
through various home shopping networks including QVC, Fuji TV,
Nihon TV and others, as well as popular online marketplaces
Rakuten, Yahoo! Shopping, and Amazon, and Vertex's own Shop-V. The
acquisition adds new product lines to Yooma's wellness offerings,
increases its customer base and the size of its distribution
network, and provides a foothold in the Japanese marketplace for
further expansion into Japan and the rest of Asia.
"We are very pleased Yooma has acquired Vertex, whose business
and product offerings will expand the scope of our platform in
size, diversity and geographic reach," said Yooma Chairman Lorne
Abony. "This third acquisition marks the successful completion of
the first phase of the strategic plan we outlined to investors
earlier this year. We continue to identify and evaluate other
potential strategic acquisitions that will be accretive to our
platform, while focusing on integrating the exciting new brands,
businesses and product lines we have acquired in the last two
months."
Transaction Details
The transaction was implemented through a stock purchase
agreement (the "Purchase Agreement") between Yooma and the
shareholders of Vertex entered into on October 1, 2021 (Toronto
time). Under the Purchase Agreement, Yooma acquired all of the
issued and outstanding securities of Vertex for a purchase price of
US$12,000,000, with US$2,500,000 paid in cash on closing and the
balance of the purchase price to be paid in two cash installments
of US$6,500,000 on April 30, 2023 and US$3,000,000 on April 30,
2024 (the "Deferred Payments"). As security for its obligations in
respect of the Deferred Payments, Yooma granted the vendors a
security interest over the shares of Vertex that it has
acquired.
Under the terms of the Purchase Agreement, Yooma also agreed to
arrange to refinance up to US$2,000,000 of Vertex debt by no later
than March 31, 2022. Vertex's senior management have been retained
and will continue to operate its business day-to-day.
About Yooma Wellness Inc.
Yooma's mission is to build a vertically integrated global
leader in the manufacturing, marketing, distribution, and sale of
wellness products including hemp seed oil and hemp-derived and
cannabinoid (CBD) ingredients. The company leverages strategically
curated sales channels and ecommerce networks to deliver a diverse
mix of wellness products through operating subsidiaries in the
United States, United Kingdom, France and Japan. Learn more at
www.yooma.ca .
Issuer Contact:
Jordan Greenberg, CEO
Email: jgreenberg@yooma.ca
Phone: 1-512-823-1678
***ENDS***
For further information on the Company please visit www.seedinnovations.co or contact:
Ed McDermott SEED Innovations Email: info@seedinnovations.co
/ Lance de Ltd
Jersey
James Biddle Beaumont Cornish Tel: +44 (0) 207 628
/ Roland Cornish Limited, 3396
Nomad
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Isabella Pierre Shard Capital Partners T: +44 (0)20 7186 9927
/ Damon Heath LLP
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Catherine Leftley St Brides Partners Email: info@stbridespartners.co.uk
/ Isabel de Ltd,
Salis Financial PR
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