It’s been a month since the initial announcement, and it seems that Odd Burger Corp (TSXV: ODD) has already fallen out of love with the idea of acquiring Zoglo’s Food Corp (CSE: ZOG), a plant-based food manufacturer.
The company announced this morning that it has elected to not proceed with the proposed acquisition. The vegan fast-food chain instead intends to “pursue other business opportunities,” while wishing the best for Zoglo’s.
The proposed combination was focused on the distribution network that has been established by Zoglo’s, with the brand having over 3,000 distribution points across Canada that includes several major retailers, such as Walmart Canada and Sobeys. That network was considered to be key for Odd Burger, whom is said to be interested in scaling its operations to include branded products within the retail landscape.
On May 5 however Zoglo’s indicated that it would be changing its distribution strategy, moving its network to Altra Foods. It’s unknown how specifically the change would impact the distribution of Zoglo’s products among major chains.
With the termination of the non-binding letter of intent to acquire Zoglo’s, its unclear if Odd Burger intends to continue down the path of branded products sold at retailers.
Little detail was provided on the financial construct of the now-terminated proposed acquisition, with it stated that Zoglo’s shareholders would own 25% of the resulting company, suggesting it would have been an all-share transaction.
Odd Burger last traded at $0.105 on the TSX Venture.
Information for this briefing was found via Sedar and Odd Burger. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
