Plant & Co (CSE: VEGN) appears to be heavily focused on growth. The company last night announced yet another acquisition, with the firm this time setting its sights on a Canadian based vegan butcher known as YamChops. Referred to as the original plant-based butcher, the firm has been operation for well over a decade, and has a suite of its own proprietary products.
The vegan butcher, whom specializes in plant-based food and meat products, currently has a suite of over 17 products that it has developed through twelve years of operations. Products include plant-based chicken, lamb, and beef burgers, as well as sausages, ribs and bacon within its suite of meat products. Other offerings include plant-based cheese and other dairy alternatives, along with other vegan products.
While it has a retail location in downtown Toronto, what’s more significant is the firm has sales from both business to consumer transactions as well as business to business transactions. Plant&Co will look to expand upon the existing distribution networks and relationships in place to enhance large and bulk orders of YamChops’ plant-based products, providing immediate avenues for growth. The company intends to emphasize moving into new and emerging markets within Canada, as well as the US. Notably, YamChops already has distribution to Sobey’s London, Nature’s Emporium and Pusateri’s.
“The acquisition of YamChops was part of the company’s M&A strategy to instantly arrive at the point of in-market sales of a known, trusted and established plant-based brand. This acquisition is truly transformational in adding to our growing portfolio of plant-based products and companies”Shawn Moniz, CEO of Plant & Co
A definitive agreement has been signed by both firms in connection with the acquisition, which will see Plant&Co acquire all issued and outstanding shares of YamChops. Consideration is to consist of a cash payment of $608,446.26 to the vendors, along with the issuance of 344,828 common shares, as well as the settling of outstanding debts in the amount of $161,553.74 to certain vendors. The transaction is expected to close in the near term.
Plant based meats are estimated to have grown to a market size of nearly US$800 million as of 2019, with the sector posting 37% growth from just two years prior. While the category didn’t exist even a decade ago, some research agencies are calling for the category to reach sales of over US$2.5 billion by 2023.
Plant & Co last traded at $0.91 on the CSE.
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