Company Enters Functional Beverages Market with Plant-Based Water Products
MONTREAL, March 19, 2020 /CNW/ - Mondias Natural Products Inc. (TSXV: NHP) (the "Company" or "Mondias") specializing in evidence-based natural products for the healthcare, bio-agriculture and functional beverages markets today announces that the Company has entered into a Definitive Agreement on March 17th, 2020 to acquire substantially all assets of Érablier Inc. a premium maple water products company from Québec, Canada. The addition of Érablier, a Premium Plant-Based Water Beverages company will expand Mondias' natural products-based portfolio and further deliver on its vision to offer consumers healthy and nutritious experiences.
The acquisition was valued at CAD $1,000,000. Mondias to pay an initial consideration of $250,000 by issuing 1,666,667 shares*. Shares issued will be in escrow and released at a rate of 20% for every $1,000,000 of net sales of Érablier products. Additionally, a 4% royalty rate to be paid on net sales of Érablier products for an additional consideration up to a maximum of $750,000. An advanced royalty payment of $68,500 (applicable to the $750,000 maximum royalty) will be payable when the financial conditions would allow it.
Mondias CEO Dr. Patrick Frankham stated that "Érablier offers distinctive products that deliver the great taste and natural ingredients consumers are looking for." Dr Frankham added that "the opportunity to acquire a unique ready-to-market beverage with natural ingredients, from the largest source of plant-based water in North America is a great entry into the competitive functional beverages market. The addition of Mr. Fleury to our team with his prior experience with the successful launch of Slow Cow, is an important milestone in building the functional beverage franchise for our Company."
As part of the Agreement, Mr. Lino Fleury will join Mondias as Brand Director for Érablier. Mr. Fleury has extensive experience in the functional beverages market. He was past inventor and founder of Slow Cow a successful natural relaxation beverage having a mix of amino acids and a mixture of known natural health products distributed internationally since 2008.
Érablier has developed a premium product made from the organic, and pure processed water obtained from sugar maple tree sap (acer saccharum). In maple syrup water industry reports, data shows that the demand for maple water has grown to exceed 16M Liters in 2018. Consumers who drink maple water, may enjoy the same experience as seen with coconut water. According to an industry report, the global coconut water market is valued at USD $2.5B in 2017 and is expected to reach USD $9.0B by the end of 2024, growing at a CAGR of 19.93% between 2017 and 2024.
*: The issuance of shares is subject to TSX approval.
About Mondias Natural Products Inc. Mondias specializes in the commercialization and development of evidence-based botanical products for the healthcare, bio-agriculture and organic markets. The company sells both oral and topical botanical agents to help manage unmet medical needs through its Holizen Laboratories division. Mondias is also developing botanical-based specialty fertilizers for use on household plants, lawns and golf courses and in urban gardens, nurseries, commercial greenhouses and to indoor cannabis growers, in collaboration with McGill's Faculty of Agricultural and Environmental Sciences.
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 release.
Forward-looking statements Some statements in this release may contain forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include the Company's inability to obtain sufficient financing to execute its business plan; competition; regulation; anticipated and unanticipated costs and delays; the success of the Company's research and development strategies; the ability to obtain orphan drug status; the applicability of the discoveries made; the successful and timely completion and uncertainties related to the regulatory approval process; the timing of clinical trials; the timing and outcomes of regulatory or intellectual property decisions; and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, and the Company does not undertake any obligation to publicly update them to reflect new information or subsequent events or otherwise except as required by applicable securities legislation.
SOURCE Mondias Natural Products Inc.
For further information: Mondias Natural Products Inc., Patrick Frankham, PhD, MBA, Chief Executive Officer, 514-943-1899, [email protected]