Purek Holdings Corp. Closes Acquisition Of 'BudaPets' All-Natural Pet Wellness Brand
April 29 2021 - 7:30AM
PureK Holdings Corp. (the "
Company" or
"
PureK") (TSX Venture: PKAN) is pleased to
announce that it has closed its previously announced acquisition of
all of the outstanding membership interests of Nirvana Group, LLC
("
Nirvana"), a Florida-based company specializing
in the development, manufacturing, and distribution of all-natural
pet wellness products and which includes the BudaPets brand.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/76f1b095-30a1-4e30-bf70-1088c60f77be
The BudaPets brand joins the Company’s existing
pet care portfolio, which includes PureKana Pet, a division of the
Company’s market-leading CBD company, PureKana, LLC
("PureKana"). As previously announced in a news
release dated February 19, 2021, PureK and PureKana also recently
acquired No B.S. Skincare, the industry-leading clean-formula skin
care and beauty company. The Company’s acquisition of both brands
serves to strengthen its foothold in some of the fastest-growing
global market categories.
"We are excited to welcome the BudaPets brand
into the PureK Holdings portfolio to address a broader base of
consumers as well as the wellness needs of their best friends,"
said Kathy Casey, CEO of PureK. "BudaPets fits perfectly into PureK
Holdings’ growth strategy focusing on the global pet care,
skincare, and plant-based food and beverage categories. BudaPets
now joins the PureKana and No B.S. brands in our mission to lead
category innovation where nature meets science."
BudaPets’ product line includes Calming, Hip and
Joint, Omega Bites, and Dental Chews products. All of BudaPets’
products are created with the highest-quality CBD from hemp extract
and natural ingredients to improve the quality of life of pets and
of livestock. All BudaPets products are manufactured and processed
in the United States and adhere to strict manufacturing standards.
In January 2020, BudaPets received National Animal Supplement
Council (NASC) certification for its natural hemp-derived pet
supplement product line, one of the highest-level certifications in
the pet care industry.
The Acquisition
Under the terms of the acquisition, PureK
acquired all of the issued and outstanding membership units of
Nirvana, including the BudaPets brand. PureK issued USD$1.5 million
in unsecured convertible debentures, with 3.25% non-compounding
interest per annum, with a maturity date that is twenty-four (24)
months following the date of closing (the "Maturity
Date"). Under the terms of the convertible debenture, the
Sellers will have the option, on a monthly basis, to convert any
portion of the convertible debentures into common shares of the
Company ("Common Shares") at a price equal to the
higher of (i) the 15-day volume weighted average price of the
Common Shares on the TSX Venture Exchange as of the date of
conversion; or (ii) CAD $3.50. Any portion or all of the
convertible debentures which have not been so converted into Common
Shares shall be payable in cash at the Maturity Date.
In addition, current members of Nirvana will be
eligible to receive earnout compensation of USD$500,000, payable in
Common Shares, if sales from Nirvana’s products equals or exceeds
USD$1 million for the 2021 fiscal year, and an additional USD$1
million payable in Common Shares if sales from Nirvana’s products
exceeds USD$2.5 million for the 2022 fiscal year. The transactions
are at arm’s length, and, other than the issuance of the unsecured
convertible debentures noted above, there is no long-term debt
being assumed. Closing of the acquisition is subject to customary
closing conditions, including approval of the TSX Venture
Exchange.
About PureK Holdings Corp.
PureK Holdings Corp. leads an international
omni-channel platform with diversified assets in the emerging
plant-based and holistic wellness consumer product categories. The
company’s mission is focused on leading innovation for the informed
Millennial and Generation Z generations in the rapidly growing
plant-based, natural, and clean ingredient space. The company
continues to focus on expansion into high-growth consumer product
categories including CBD products, plant-based food and beverage,
and the global pet care and skin care industries. For more
information on PureK Holdings Corp., please visit
https://purekana.com/investor-relations/.
For further information:
Brian MeadowsChief Financial OfficerPh: +1
(855) 553-7441Email: ir@purekana.com
Daniel NussbaumMedia and Investor RelationsPh:
+1 (917) 232-8960Email: Daniel@amwpr.com
Forward-Looking Statements and
Information
Certain statements contained in this news
release constitute "forward-looking information" and
"forward-looking statements" as such terms are used in applicable
Canadian securities laws. Forward-looking statements and
information are based on plans, expectations and estimates of
management at the date the information is provided and are subject
to certain factors and assumptions, including, that the Company’s
financial condition and development plans do not change as a result
of unforeseen events. Forward-looking statements and information
are subject to a variety of risks and uncertainties and other
factors that could cause plans, estimates and actual results to
vary materially from those projected in such forward-looking
statements and information. Factors that could cause the
forward-looking statements and information in this news release to
change or to be inaccurate include, but are not limited to, the
risk that any of the assumptions referred to prove not to be valid
or reliable, that occurrences such as those referred to above are
realized and result in delays, or cessation in planned work, that
the Company’s financial condition and development plans change, and
delays in regulatory approval, as well as the other risks and
uncertainties applicable to the CBD industry and to the Company, as
set forth in the Company’s Filing Statement in respect of its
qualifying transaction filed under the Company’s profile at
www.sedar.com. The Company undertakes no obligation to update the
forward-looking statements and information, other than as required
by applicable law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
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