CULT Food Science Corp (CSE:CULT, OTCQB:CULTF) announced it has entered into a share exchange agreement with Peqish Group Food & Hospitality Inc that will also see the two companies form a joint venture partnership.
The agreement entails a transaction valued at $187,500, where both parties will exchange shares of their respective companies.
Once the share exchange closes, CULT and Peqish will establish a joint venture agreement focused on the development and commercialization of cellular agriculture food products within the medical foods framework established by Peqish.
Peqish is an ag-tech company specializing in food as medicine.
According to a statement from CULT, the joint venture will begin with CULT and Peqish fulfilling their contributions and obligations separately within their organizations. If the venture progresses to the commercialization phase, the parties anticipate forming a new subsidiary company with equal ownership.
CULT will contribute 100% of the startup costs, including initial product design and branding, as well as expertise in design research, ideation, program management, recruitment, and investment.
"Precision nutrition, designer foods, cellular agriculture, and precision fermentation are all symbiotic,” said Lejjy Gafour, CEO of CULT Food Science. "Being able to create evidence-based products using disciplined approaches, be it for a particular condition or nutritional goal, will be a driving force at the frontiers of food to help us address more than just food security challenges, but also issues we face globally with food nutrition."
Peqish, meanwhile, will provide insights, industry network, and expertise in culinary medicine and clinical areas, along with access to its team of clinical and scientific experts for conducting trials and validating products.
Anthony Marotta, Peqish's CEO, will also join CULT's scientific advisory board as part of the agreement.
"Our partnership with CULT Food Science is an exciting step forward in the field of cellular agriculture," said Marotta. "It's important to explore sustainable and innovative solutions to address our planet's growing food demands.”
Under the terms of the share exchange agreement, CULT will issue approximately 1,921,500 common shares to Peqish, while Peqish will issue around 46,937 common shares to CULT.
Toronto-based CULT invests, develops, and commercializes cellular agriculture technologies and products.
Contact Angela at angela@proactiveinvestors.com
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