HPP co-invests in LAVVA plant based milk and yoghurt with S2G Ventures

SYDNEY: Health and Plant Protein Group Limited (HPP) announced that in accordance with its strategy to continue to capture brand led opportunities in the plant protein space, it has agreed to co-invest in EVR Foods Inc. with S2G Ventures. EVR Foods Inc. holds entity of the LAVVA brand and its associated assets.

HPP has executed and completed the initial transaction of co-investing with S2G Ventures and others via a purchase of convertible, unsecured promissory notes issued by LAVVA.

HPP and S2G Ventures have each purchased USD 300,000 of notes that attract 7% interest per annum, maturing 28 February 2021 (New York time).

Relevantly, HPP and S2G Ventures have exclusivity to conduct diligence and to negotiate and enter into a definitive legally binding investment agreement based on a non-binding term sheet, which contemplates a further aggregate Series C style equity investment to acquire a controlling stake in EVR Foods Inc and HPP assuming management of LAVVA strategy and operations for a fee to be negotiated.

If an agreement is reached by the maturity date, HPP’s principal and interest will convert into Series C style equity in LAVVA.

If no agreement is reached by the maturity date and there is no alternative equity financing, HPP is entitled to repayment of its principal and interest in cash or to convert its debt into Series B preferred equity in LAVVA.

If there is an alternative equity financing, HPP’s principal and interest will automatically convert into the same securities in the alternative equity financing.

Executive Director, Dennis Lin, said, “The investment in LAVVA is consistent with our core strategy of building HPP including through the high growth categories of plant based milk and yoghurt.  We are pleased to have this opportunity to partner with co-founder Liz Fisher and S2G Ventures.  We are aligned on our beliefs of creating quality foods that are also good for the environment;together, we believe we can continue to grow LAVVA through our expertise in supply chain development and management, the strong potential of incorporating macadamia ingredients into LAVVA nutrition concept, and introducing LAVVA to customers in Australia and Asia within a short timeframe, taking advantage of the growing appetite in those markets for wholesome nutrition with great provenance”.

LAVVA Founder, Liz Fisher, said, “We have been excited by our engagement with HPP who clearly can bring insight to our business and help us fully realise the brand’s potential.  I sincerely look forward to closing the remaining transaction and becoming part of the HPP team in making LAVVA one of the world’s best and leading clean label plant based yoghurt and dairy brands”.