Zamaz PLC (LSE:ZAMZ) has revealed that companies owned/controlled by its co-founder Dominic White have upped their holdings in the company to 66.29% after buying out Zamaz's second-largest shareholder, while it also announced the successful update of its brand licence agreement.
The international eCommerce and retail technology aggregator of sustainable brands said it has been notified that Maximum Return Systems Group (Max), a sister company to its largest shareholder, Maximum Return Systems Group LLP (MaxRSGL), both of which are owned/controlled by White, purchased 94,467,715 ordinary shares in the company from its second-largest shareholder Mrs A. Khorassani.
The purchase, which is Khorassani's entire holding, represents 13.28% of the company's issued ordinary share capital and brings the aggregate beneficial shareholding of companies controlled by White in the share capital of the company to 66.29%.
To facilitate this transaction, which the company said its board believes to be in the interests of all shareholders, Khorassani's obligations under contractual lock-in arrangements put in place at the time of the company's listing have been waived.
Brand Licence Update
Zamaz also announced that it has successfully agreed a change to its licencing agreement that governs use of the company's licensed brands, led by the sustainable cleaning product Ecomoist.
The revised licence agreement enables the company to focus its sales and marketing resources entirely on Ecomoist and releases it from its obligation to invest in and develop other licensed brands. Ecomoist represents approximately 99% of the revenue under this licencing agreement and an estimated one-third of the group's current revenue generation, following the revenue-enhancing acquisitions made in the first half of its current financial year.
Zamaz said its directors strongly believe that the company can generate greater revenue, profit and shareholder value by focusing its UK resources on Ecomoist over the next 12 months, rather than committing to launch new brands under this licence arrangement.
Zamaz also confirmed that, going forward, it will be focused on brand ownership and vertical integration of its brand operations (from supply chain to distribution), rather than licencing arrangements.
In a statement, Martin Groak, non-executive chairman of Zamaz commented: "Dominic White, the founder and CEO of Max and MaxRSGL has been a supporter of Zamaz since its inception, and recognised from an early stage the huge potential within the business. Following the company's successful stock market listing in September last year we are delighted he is demonstrating that continuing support by increasing his shareholding. Zamaz has already completed two revenue and profit-enhancing acquisitions since listing and we are looking forward to executing more of the acquisition pipeline in what we expect to be a busy 2023."
"We are also delighted to have successfully repositioned our licencing agreement so that the team can focus on expanding Ecomoist revenues and profits and its geographic reach, including into the USA, and also further develop the Bella Dispensa business. This is a step forward in our strategy to own the majority of the brands that we develop, ensuring greater revenue security and value creation for shareholders," Groak added.