Disposal of Probio7 Brand

Samarkand Group PLC

14 June 2024

 

Samarkand Group plc

("Samarkand", the "Company" or together with its subsidiaries the "Group")

Disposal of Probio7 Brand, Repayment of Directors Loans

Samarkand Group plc (AQSE:SMK), the consumer brand owner and cross border eCommerce distribution services group following its recent trading update, today announces the disposal of its long-established probiotics brand Probio7.

We are announcing the disposal of our probiotic brand Probio7, for a total consideration of £1.3m to be satisfied by initial consideration of £1.1m in cash and deferred consideration of £0.2m payable in cash, in equal instalments over a 12-month period. The Group acquired Probio7 in December 2017 as a brand primarily distributed offline. Since acquiring the brand revenues have grown year-over-year as a result of entering online sales channels, upgrading the DTC operation and China market entry.

The disposal of Probio7 enables the Group to increase resources behind our faster growing brands Napiers the Herbalists our natural herbal apothecary brand and Zita West our specialist supplement brand for fertility and reproductive health.

The disposal of Probio7 gives the Group additional working capital which is necessary to support the acquisition of Optimised Energetics Ltd and the ongoing transformation of the business towards a scale up platform for niche brands, less defined by and less dependent on sales to China and the Nomad technology platform. The Group will now repay the unsecured, unconvertible loans made by the Directors on a bridging basis to enable the acquisition of Optimised Energetics Ltd.

David Hampstead, Chief Executive Officer of Samarkand Group, commented ÒThe disposal of Probio7 demonstrates our track record in acquiring and growing the top and bottom line in niche health and wellness brands. In tandem with the recently announced acquisition of Optimised Energetics Ltd this leaves us with us a better positioned portfolio of high growth, high potential brands and strengthens the capabilities of our platform through vertical integration which we consider a source of competitive advantage in the market for niche brandsÓ.  

For more information, please contact:

Samarkand Group plc	Via Alma
David Hampstead, Chief Executive Officer Eva Hang, Chief Financial Officer	http://samarkand.global/
VSA Capital Ð AQSE Corporate Adviser and Broker	[phone]
Andrew Raca, Alex Cabral (Corporate Finance)
Alma Strategic Communications	[phone]
Josh Royston Robyn Fisher Joe Pederzolli	[e-mail]

Notes to Editors

Samarkand is a consumer brand owner and distributor operating a scale up platform for niche, premium, multichannel, health and healing brands. Core owned brands include Napiers the Herablists, ScotlandÕs oldest natural herbal apothecary, Zita West, a leading specialist supplement line for fertility and reproductive health. Platform services include marketing, sales and channel development with a focus on social commerce, China market entry, international expansion and manufacturing.  In addition the Group works as the exclusive China market partner for a select portfolio of niche luxury skin care brands and connects these brands to the Chinese consumer via cross border eCommerce, leveraging our Nomad technology

Founded in 2016, Samarkand is headquartered in Tonbridge, UK with offices in Shanghai.

For further information please visit https://www.samarkand.global/  

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