VANCOUVER, BRITISH COLUMBIA: Vejii Holdings Ltd., a North American online platform for plant-based and sustainable products, has completed the acquisition of VEDGEco USA Inc. in a $6.25 million deal as of December 31, 2021.
VEDGEco is a leading online B2B wholesale marketplace for plant-based products.
Pursuant to the purchase agreement, Vejii issued to the vendors on the closing date of the acquisition an aggregate of 12.865 million common shares of Vejii with a deemed value of $3.5 million.
The remainder of the purchase price is payable in earn-out payments up to a maximum of $2.75 million payable in common shares, priced in the context of the market, to be issued to the vendors upon VEDGEco meeting certain milestones.
VEDGEco’s key personnel are expected to continue to run the operations of VEDGEco and Kory Zelickson and Darren Gill, directors of Vejii, have joined the board of directors of VEDGEco.
“I would personally like to thank our advisors and team members on both sides who worked tirelessly over the holidays to ensure we close this transaction before year-end. This allows our new combined teams to hit the ground running in 2022, and focus on growing our businesses and onboarding new customers and products to our platforms,” said Kory Zelickson, CEO of Vejii.
The acquisition is expected to drive synergies across purchasing, customer service, technology, and logistics for Vejii and VEDGEco.
Vejii will also be able to leverage VEDGEco’s existing facilities in Hawaii, Northern California and Georgia, while providing VEDGEco with access to its facilities in Texas, Wisconsin, and its soon-to-be operational third-party logistics operation in Southern California.
In addition to providing VEDGEco’s existing offering of wholesale plant-based products, Vejii will now have the ability to significantly expand VEDGEco’s product selection by leveraging its existing case-lot purchasing and expanding the range of products on its platform through VEDGEco.
VEDGEco operates its distribution centers from Hawaii and California, which will further expand Vejii’s distribution network, reducing shipping costs and expanding the company’s offering of regionalized same-day delivery.
“Between going public and completing our acquisition of Vegan Essentials and then VEDGEco, 2021 closed on a high note for us,” said Darren Gill, President and COO of Vejii.
“I feel we have proven our ability to execute our plans and objectives, getting two deals closed in two months, and the stage is now set for growth in 2022 as Vejii will be able to service our brand partners through our direct to consumer marketplace and business to business through the addition of VEDGEco.”