While Vejii Holdings (CSE: VEJI) may have been one of many issuers to announce M&A transactions right before the holidays, they appear to be among the few that have already closed such transactions. The firm this morning indicated it has closed its previously announced acquisition of VedgeCo USA.
The acquisition of VedgeCo, a plant-based wholesaler, is anticipated to result in certain synergies for Vejii, whom is a plant-based focused digital marketplace. With VedgeCo having distribution centres in Hawaii, California, and Georgia, the purchase is expected to result in improvements in the areas of purchasing, logistics, customer service and others for both firms.
The transaction saw the plant-based firm acquire VedgeCo for a total figure of US$6.25 million, of which $3.5 million was payable upon closing. The transaction resulted in the firm issuing 12.9 million common shares at a price of C$0.35 per share. The remaining figure is subject to certain earn-out milestones, and will be paid in common shares in the context of the market once milestones are achieved.
All shares issued under the transaction are subject to a twenty four month lockup arrangement, with 12.5% of the shares being unlocked every quarter.
“Between going public and completing our acquisition of Vegan Essentials and then VEDGEco, 2021 closed on a high note for us [..] the stage is now set for growth in 2022 as Vejii will be able to service our brand partners through our direct to consumer marketplace and business to business through the addition of VEDGEco,” commenteed Darren Gill, COO of Vejii, on the closing of the transaction.
Vejii Holdings last traded at $0.20 on the CSE.
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