Zoglo's Food Corp. (CSE:ZOG) revealed it has signed a non-binding letter of intent (LOI) that could result in 100% of its shares being acquired by Odd Burger Corp.
Under the proposed transaction, the companies said, Zoglo’s shareholders would hold about 25% of the enlarged company, with Odd Burger shareholders owning roughly 75%.
The combination would give Odd Burger access to Zoglo’s food manufacturing network in North America and Europe, while Odd Burger’s food services channels could provide Zoglo’s with a new revenue stream. The merger would also help facilitate the retail launch of Odd Burger’s own branded products as it scales its operational internationally, they added.
"This acquisition provides growth potential for both of our companies," Odd Burger co-founder and CEO James McInnes said in a statement. "The retail distribution that Zoglo's has is nearly unmatched in the plant-based retail space in Canada, and I believe that we can leverage this distribution to both monetize our own products and also make Zoglo's products even more successful in their category.”
By combining its resources and expertise with Odd Burger, Zoglo’s said it would be better placed to accelerate its growth and expand its reach domestically and internationally.
"We are thrilled to announce our intention to join forces with Odd Burger Corp, a company that shares our passion for plant-based foods and sustainable business practices," commented Zoglo’s CEO Val Jedras.
"With over 25 years of experience in the Canadian plant-based consumer packaged goods industry, we have built a strong brand and loyal customer base. We are excited about the potential of this partnership, and look forward to working closely with the Odd Burger team to bring delicious and nutritious plant-based products to more consumers around the world," he added.
The companies said they will now negotiate a definitive acquisition agreement, with the proposed tie-up subject to a number of conditions being met as well as compliance with applicable TSX Venture Exchange policies.
Contact the author at stephen.gunnion@proactiveinvestors.com