Modern Meat Continues Its Growth Through the Acquisition of Retail Locations
Vancouver, British Columbia--(Newsfile Corp. - September 9, 2020) - Modern Meat Inc. (CSE: MEAT) ("Modern Meat") or (the "Company"), an award-winning plant-based food manufacturer, announced today that it has signed a term sheet to acquire 1257189 BC Ltd. (the "Vendor"), which owns two of three Victoria's Health & Organic Bar Retail locations, both located in Vancouver, BC. Victoria's Health & Organic Bar has been in business for 18 years and has gathered a significant following in the Health and "Good for You" Community. Last year's gross sales from all locations, including the third store in North Vancouver, BC, totaled approximately $4.3 million, focusing only on Health-related products.
Modern Meat intends to renovate and rebrand the acquired stores under the brand "Modern Health and Wellness Bar." Stores will be converted to focus solely on vegan products and supplements, in addition to a significant increase in food services serving premade meals and expansive to-go vegan menu.
"The acquisition of Victoria's is an opportunity that allows Modern Meat to build itself as a leader in the health and nutrition market. Adding our own retail locations to the fold is yet another milestone for the company," states Tara Haddad, CEO of Modern Meat. "We are thrilled to acquire such an established brand and Company with a great reputation in the Health and "Good for You" Community. We will adapt the core principles that drove Victoria's success and implement Modern Meat's plant-based lifestyle values through Modern Health and Wellness Bar. We feel there is a huge gap in the plant-based health and supplement space and establishing retail locations which focus on the health and wellness lifestyle-oriented consumer aligns very well with our products."
In connection with the transaction, Modern Meat will be issuing 350,000 shares at a deemed price of $4.00 per share to the Vendor, for the two locations of Victoria's Health & Organic Bar under its ownership. Furthermore, Modern Meat will have an option for five years to buy the remaining store for a cash purchase of $3 million dollars.
"Modern Meat is more than a product, it is a lifestyle and culture," explains Campbell Becher, Director and Head of Finance and M&A for Modern Meat. "Our effort to establish our brand continues to gain momentum through this acquisition. Our goal is to build the Modern Meat lifestyle brand through awareness, expansion, and by developing long standing community and consumer relations. We expect the Modern Health and Wellness Bar channel to be a strong contributor toward our growth. We continue to explore opportunities that fit with our core principles and will help build our company brand, distribution, and revenue."
The completion of this transaction is subject to conditions including the completion of definitive documentation, approval of the Canadian Securities Exchange and other customary conditions. There is no certainty the transaction will be completed on the terms proposed or at all. Further details will be provided in subsequent news releases.
About Modern Meat
Modern Meat is a Canadian food company based in Vancouver, British Columbia that offers a portfolio of plant-based meat products. Modern Meat recognizes the importance of providing consumers nutritious and sustainable meat alternatives without sacrificing taste. We are deliberate in choosing ingredients free of soy, gluten, nuts and GMO's. Our mission is to change the way food is produced and consumed for the benefit of people, animals and the environment by using only natural 100% plant-based ingredients.
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Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: Modern Meat and Modern Meat's business and prospects; the Company's objectives, goals or future plans; future growth of the alternative meat sector, Modern Meat sales growth, plans to increase online marketing and distribution channels, and the business, operations, management and capitalization of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; local and global market and economic uncertainties arising in respect of the COVID-19 pandemic; litigation, availability of key product ingredients, legislative, environmental and other judicial, regulatory, political and competitive developments; the ability to effectively expand manufacturing and production capacity; the success of market initiatives and the ability to grow brand awareness; the ability to attract, maintain and expand relationships with key strategic restaurant and food service partners; our ability to predict consumer taste preferences; delay or failure to receive regulatory approvals; the sufficiency of our cash to meet liquidity needs; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Accordingly, the forward-looking statements discussed in this release may not occur and could differ materially as a result of these known and unknown risk factors and uncertainties affecting the Company. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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