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Seed Innovations Ltd (SEED)

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Tuesday 05 October, 2021

Seed Innovations Ltd

Investee Company Update: Yooma Wellness

RNS Number : 9746N
Seed Innovations Limited
05 October 2021
 

 

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

5th 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: [email protected]

Phone: 1-512-823-1678

 

***ENDS***

 

 For further information on the Company please visit  www.seedinnovations.co   or contact:

 

Ed   McDermott   /   Lance   de   Jersey

SEED   Innovations   Ltd

Email:    [email protected]

 

James Biddle /   Roland Cornish

Beaumont   Cornish   Limited,
Nomad

 

Tel: +44 (0) 207 628 3396

Isabella Pierre /   Damon Heath

Shard Capital Partners LLP

 

T: +44 (0)20 7186 9927

Catherine   Leftley   /   Isabel   de   Salis

St   Brides   Partners   Ltd,  
Financial PR

 

Email:    [email protected]

 

 

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