TORONTO, CANADA: Yooma Wellness Inc. has acquired N8 Essentials, a U.S. based manufacturer and seller of wellness products that incorporate CBD, cannabinoids and other functional ingredients.
The acquisition was completed through Yooma’s wholly-owned subsidiary, Socati Corp., and adds N8’s 14,000 square foot manufacturing facility in Kansas to Socati’s existing 22,000 square foot facility in Montana, significantly increasing the platform’s downstream manufacturing capabilities in the United States.
The transaction will reduce reliance on third-party co-manufacturing agreements and create cost savings and improvements to production quality and consistency, while also providing opportunities for future expansion.
“The acquisition of N8 Essentials serves to further Yooma’s mission to build a global CBD and wellness platform,” said Lorne Abony, Chairman of Yooma. “This acquisition satisfies our objectives of increasing Yooma’s United States presence as well as achieving vertical integration by adding downstream manufacturing capabilities to Socati.”
“We are very pleased to be adding N8 to our global platform,” added Yooma’s Chief Executive Officer, Jordan Greenberg. “Their expertise in manufacturing CBD products will have immediate strategic and accretive value to Socati’s existing business, and will increase our ability to satisfy the growing demand for high-quality wellness products in the United States and abroad.”
The transaction was completed through an equity purchase agreement between Socati, Yooma, N8 and its equity holders dated October 13, 2021.
The Purchase Agreement values N8 at US$850,000, less working capital adjustments on closing of US$60,000.
On completion of the transaction yesterday evening, Socati became the owner of all of the issued and outstanding equity in N8 and Yooma issued 1,173,847 common shares (the “Consideration Shares”) to the former equity holders of N8 at a price per share of US$0.673 (CAD$0.853).
The Consideration Shares will be subject to a 28-month lock-up period, with one quarter of the Consideration Shares releasing from lock-up 10 months following the closing, and one quarter of the Consideration Shares releasing every 6 months thereafter. Key members of N8’s senior management have been retained and will continue to operate its business day-to-day.
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