Zoglo's Incredible Food Corp. (CSE:ZOG) said it has successfully cancelled its existing production agreement and has entered into a new agreement with Israeli food giant Naknik Nahariya Kasher Soglowek Ltd to waive its existing debt of C$2.5 million and transfer all trademarks concerning Zoglo's and the Zoglo's Incredible brand to the company.
As part of the agreement, Zoglo’s said it will pay 3% in royalties from any product sold under Zoglo’s brand in perpetuity to Soglowek, with royalty payments to be made every 30 days.
Zoglo’s brand sales will be verified by a Soglowek-appointed accountant quarterly and Soglowek will have the right to review the company’s sales reports.
READ: Zoglo's Incredible Food adds seasoned CFO Doug Harris to executive team
Zoglo’s said it will have the right to use the intellectual property as long as royalties are paid.
The company’s CEO Jim Delsnyder said by restructuring its debt, Zoglo’s is better positioned to continue focusing on growth and increasing its brand presence across the retail landscape.
"We are thankful and pleased for Soglowek's continuous confidence in our team and operations to bring Zoglo's unique and delicious plant-based offerings across North America," Delsnyder said in a statement.
Zoglo’s Incredible Food is a publicly-traded plant-based food company that offers nutrient-rich, plant-based appetizers, veggies, and meat substitutes to fulfill consumers' needs for all occasions and cooking requirements.
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