Mondias Signs Binding LOI to Acquire Premium Organic Maple Water Beverage Products
First Acquisition for Wholly Owned SetPoint Beverages Business Unit
MONTREAL, Feb. 5, 2020 /CNW/ - Mondias Natural Products Inc. (TSXV: NHP) (the "Company" or "Mondias") specializing in evidence-based natural products for the healthcare and bio-agriculture markets today announces that the Company has signed a Binding Letter of Intent (LOI) to acquire a Quebec, Canada startup beverage company. This will represent the first functional beverage acquisition for the Company's wholly owned SetPoint Beverages Business Unit. Functional beverages are low in sugar, non-alcoholic beverages that comprise of vitals such as vitamins, minerals, herbs, cannabinoids, prebiotics, probiotic bacteria and fruit or vegetable juices which are invaluable products in maintaining good health and vitality.
Once completed, Mondias will acquire all the assets of Érablier Inc. a Québec based enterprise. Érablier has developed a premium product made from the organic, and pure processed water obtained from sugar maple tree sap (acer saccharum). The beverage will go through extensive market testing in the coming months. In maple syrup water industry reports, data shows that the demand for maple water has grown to exceed 16M Liters in 2018. It is suggested that maple water drinks may follow the same demand curve as that seen for coconut water. According to an industry report, the global coconut water market is valued at USD 2.5B in 2017 and is expected to reach USD 9.0B by the end of 2024, growing at a CAGR of 19.93% between 2017 and 2024.
Mondias CEO Dr. Patrick Frankham stated that "This strategic acquisition represents an excellent opportunity to enter the vibrant health and wellness beverage space using a natural and organic product obtained from Québec." Dr Frankham also added that "maple water is a unique natural product that is harvested by sophisticated and large-scale methods from which we obtain our starting material to create natural products for consumers."
The transaction is subject to Mondias due diligence, Board and regulatory approval. The purchase price consists of a $75,000 cash payment ($50,000 on closing and a further $25,000 payment upon the completion of the technology transfer) and a 4% royalty of the annual net sales (as defined in the LOI) subject to a maximum $1,000 000 aggregate royalty payment. It is contemplated that the royalty payment would be paid as to 75% in cash and 25% in common shares of Mondias.
About Mondias Natural Products Inc.
Mondias specializes in the commercialization and development of evidence-based botanical products for the healthcare, bio-agriculture and organic markets. The company sells both oral and topical botanical agents to help manage unmet medical needs through its Holizen Laboratories division. Mondias is also developing botanical-based specialty fertilizers for use on household plants, lawns and golf courses and in urban gardens, nurseries and greenhouses, in collaboration with McGill's Faculty of Agricultural and Environmental Sciences.
For more information, visit: www.mondias.ca
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 statements
Some statements in this release may contain forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include the Company's inability to obtain sufficient financing to execute its business plan; competition; regulation; anticipated and unanticipated costs and delays; the success of the Company's research and development strategies; the ability to obtain orphan drug status; the applicability of the discoveries made; the successful and timely completion and uncertainties related to the regulatory approval process; the timing of clinical trials; the timing and outcomes of regulatory or intellectual property decisions; and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, and the Company does not undertake any obligation to publicly update them to reflect new information or subsequent events or otherwise except as required by applicable securities legislation.
SOURCE Mondias Natural Products Inc.
Mondias Natural Products Inc., Patrick Frankham, PhD, MBA, Chief Executive Officer, 514-943-1899; [email protected]; Relations Publiques Paradox Inc., 514-341-0408
Share this article