Zoglo’s Incredible Food Corp has announced the signing of a non-binding letter of intent (LOI) to acquire a 50.5% interest in Monday Swiss UK Ltd, a European-based developer and manufacturer of innovative plant-based food alternatives.
The company said the proposed acquisition would give it the capacity to expand globally and is expected to increase the company’s annual sales by up to C$6 million, which would result in Zoglo's annual revenue increasing by up to 200%.
“The proposed acquisition of Monday Swiss represents the beginning of Zoglo's commitment to sustainable global expansion and leading plant-based food innovation,” Zoglo’s CEO Anthony Morello said in a statement.
READ: Zoglo’s Incredible Food launches 12 new plant-based food products into the Canadian retail market
“This acquisition creates a strong business for Zoglo's in Europe and the U.K. in conjunction with its current evolving business in Canada and existing US business,” Morello added.
Monday Swiss founder Alon Cahn also commented, stating: “With a production capacity of over 500,000 kilograms per month, and the ability to double our capacity by 2023, I believe Zoglo's is poised to become one of the leading plant-based meat alternative companies globally.”
Cahn is expected to join Zoglo's as chief executive officer of its European operations.
Should the acquisition go through, Zoglo's will issue €5.1 million worth of its common stock to the owners of Monday Swiss at a deemed price of C$0.41 per share, or a volume-weighted average price from July 26, 2021, until the date the definitive agreement is executed, whichever is greater.
Zoglo's will also invest up to an additional €750,000 upon closing and provide a loan of up to €1 million to develop new production capacity.
Zoglo’s Incredible Food is a plant-based food company that markets appetizers, vegetables and meat substitutes in over 700 retail stores across Canada, including Walmart, Shoppers Drug Mart, Sobeys, and Loblaws, and has representation in the US and Europe.
Contact Sean at sean@proactiveinvestors.com