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- Freshii (OTCPK:FRHHF) agrees to buy a majority stake in online health and wellness product retailer Natura Market.
- The Company will buy 60% of Natura Market’s outstanding shares at closing with rights to purchase the remaining 40% of Natura’s shares through 2025.
- The Company will pay C$5.7M and potential earnout payment subject to Natura meeting certain performance metrics in 2022, in return for this initial 60% tranche of shares.
- The price of remaining 40% stake of Natura’s will be determined based on the company’s Ebitda performance through the relevant period.
- The C$5.7M in initial consideration is based on an enterprise valuation of C$9.6m, reflecting ~0.5x of Natura Market’s TTM revenue of C$19m as at Sept. 30.
- The transaction is expected to be financed through available cash on hand.
- On closing, the transaction will have an immediate material impact to Freshii’s top-line revenue and increase digital transactions significantly.
- The deal is expected to close in Freshii’s (OTCPK:FRHHF) fiscal fourth quarter.