/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES./
TORONTO, Sept. 5, 2019 /CNW/ - Mimi's Rock Corp. ("Mimi's Rock" or "the Company") (TSXV: MIMI), an online dietary supplement and wellness business, is pleased to announce it has entered into binding agreements to acquire two additional businesses, namely All Natural Advice Ltd. ("All Natural") and Maritime Naturals Ltd. ("Maritime Naturals"). All Natural is the #1 Skin Care Seller on Amazon Canada for the past 4 years. Mimi's Rock will acquire all of the issued and outstanding shares of each of All Natural and Maritime Naturals for an aggregate purchase price of $9,636,000. The acquisition of these accretive businesses will fold in the #1 seller of skincare products on Amazon Canada, adding approximately $5.5 million of revenue and $1.6 million of EBITDA. Combined, these two companies delivered a 54% compound annual growth rate over the last five years, with no debt.
"We are very excited to add the All Natural and Maritime Naturals brands to our portfolio. These companies have a history of strong financial performance and will immediately open additional markets for us. The brand exposure and potential for cross-selling to existing customers will be a great benefit," says Mimi's Rock CEO, David Kohler. "Access to the premium organic and all-natural beauty segment is a great fit for our company and aligns with our wellness-seeking clientele."
The purchase price will be satisfied by (i) the payment, in aggregate, of approximately $5.5 million in cash, (ii) the issuance of common shares in the capital of Mimi's Rock valued at approximately $2.1 million, and (iii) the assumption of a $2 million vendor loan to be repaid within 12 months of closing. The cash portion of the purchase price is expected to be paid from a combination of cash on hand and additional borrowings under a modification of the Company's long term debt facilities. Further details will be provided in a subsequent news release once determined. Subject to the satisfaction of customary closing conditions, including the execution of definitive agreements and receipt of approval from the TSX Venture Exchange, the acquisitions are expected to close on or about October 15, 2019.
Combined Acquisition Highlights:
- #1 seller of skincare products on Amazon Canada
- ~$5.5M revenue
- ~$1.6M EBITDA
- 54% CAGR over 5 years
- 45 SKUs
- Operational in multiple jurisdictions
All Natural and Maritime Naturals currently offer products in Germany, Italy, UK and Australia, giving Mimi's Rock immediate access to these markets. Their products will allow Mimi's Rock to offer 45 additional SKUs to its already impressive basket of products by offering anti-aging organic skincare products, all-natural masks & scrubs, acne blemish treatments, beard oils and more.
About All Natural Advice & Maritime Naturals
All Natural Advice and Maritime Naturals, based in Ontario and Nova Scotia, respectively, are companies focused on skin and beauty care. Products sold by All Natural and Maritime Naturals are made in Canada and registered with Health Canada and under the EU Cosmetics Act. Together, All Natural and Maritime Naturals have over 45 products in jurisdictions around the world. All Natural has been featured on BNN as a top selling skincare brand in Canada and has been rated the #1 Beauty Brand on Amazon Canada for the past four years.
About Mimi's Rock Corp.
Mimi's Rock Corp. is an online dietary supplement and wellness company. The leading brand of Mimi's Rock is Dr. Tobias, which features more than 30 products, including the top-selling Colon Cleanse and the #1 selling Omega 3 Fish Oil, which is also the fourth largest Subscribe and Save product on Amazon.com. Mimi's Rock currently serves customers in the United States through Amazon.com, Walmart.com, Jet.com and Dr. Tobias.com, with a plan to expand into other markets. For more information, visit https://mimisrock.com.
Certain forward-looking statements contained in this news release that are based on the current expectations of management involve risks and uncertainties This 'forward-looking information', as the term is defined in applicable securities laws, includes, without limitation, the business and business results, goals, or outlook of Mimi's Rock; risks associated with financial results and stability; development projects such as those referenced herein; sales to foreign jurisdictions; engineering and construction; production (including control over costs, quality, quantity, and timeliness of delivery); foreign currency and exchange rates; maintaining adequate working capital and raising further capital on acceptable terms or at all; and other similar statements concerning anticipated future events, conditions, or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions, and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and a number of material factors, many of which are beyond the Company's control, may affect actual performance. Accordingly, actual future events, conditions, and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this news release. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking, including those identified by the expressions 'aim', 'anticipate', 'appear', 'believe', 'consider', 'could', 'estimate', 'expect', 'if', 'intend', 'goal', 'hope', 'likely', 'may', 'plan', 'possibly', 'potentially', 'pursue', 'seem', 'should', 'whether', 'will', 'would', and similar expressions. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Except as required by law, Mimi's Rock does not assume any obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
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 news release.
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SOURCE Mimi’s Rock Corp.