Things are progressing for Zoglo’s Incredible Food Corp (CSE: ZOG), in connection with their previously announced non-binding letter of intent to take a majority stake in Monday Swiss, a European plant-based food manufacturer. The company this morning has moved the transaction to a binding memorandum of understanding.
The new agreement is said to supersede the prior arrangement entered into with the firm, with Zoglo’s set to take a 50.5% stake in the company. The firm has indicated that the acquisition will enable it to expand globally, with the deal expected to add up to $6.0 million in annual revenues to the company.
While financial details on the transaction were not provided this morning, it has been previously stated that the stake is to be purchased for EUR$5.1 million, to be paid in the form of common shares of Zoglo’s. Additional provisions for loans were previously indicated to be included within the deal.
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Monday Swiss is a leading plant-based foods produced, whom has spent heavily on research and development. The company is said to have tech surrounding next-generation meat analogues, making it a leader in texture, quality, and innovation, which will be incorporated into Zoglo’s own products. The company currently has distribution at a number of household names including Co-Op, Tesco, Holland & Barrett, and Ocado, among others.
“Following extensive due diligence of Monday Swiss, we feel confident entering into a binding MOU to facilitate the acquisition of a world-class plant-based company with a production capacity of over 500,000 kilograms per month. This acquisition creates a strong business and synergies for Zoglo’s in Europe and the U.K. in conjunction with its current evolving business in Canada and the US.,” said CEO Anthony Morello on the development.
A timeline for the closing of the transaction was not provided.
Zoglo’s Incredible last traded at $0.24 on the CSE.
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