Zoglo's Incredible Food Corp. has entered into a binding memorandum of understanding (MOU) to acquire a 51% interest in Monday Swiss UK Ltd., a leading European-based developer and manufacturer of innovative plant-based food alternatives.
The company said it anticipates Monday Swiss' experience in new product development will help ensure that Zoglo's product portfolio continuously evolves to enable it to be a leader in Canada and globally.
Zoglo’s said the MOU supersedes the non-binding letter of intent (LOI) to acquire a 50.5% interest in Monday Swiss previously announced on August 3, 2021.
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Established in 2012, Monday Swiss is a leading producer of a wide variety of plant-based food products and technology, including the Veggie Day and Monday Swiss lines, with a dedicated state-of-the-art facility.
Zoglo’s said Monday Swiss has invested over $3 million in research and development over the past five years, servicing major customers such as Tesco, Holland & Barrett, Co-Op, and online grocery retailer Ocado, with leading-edge whole-muscle plant-based technology.
Zoglo's noted that the proposed acquisition will give it the capacity to expand globally and provide its customers with the next generation of plant-based foods. And it is expected to increase annual sales by up to C$6 million.
"Following extensive due diligence of Monday Swiss, we feel confident entering into a binding MOU to facilitate the acquisition of a world-class plant-based company with a production capacity of over 500,000 kilograms per month," said Anthony Morello, CEO of Zoglo's, in a statement.
"This acquisition creates a strong business and synergies for Zoglo's in Europe and the UK in conjunction with its current evolving business in Canada and the US."
The technology from Monday Swiss' facility is expected to provide Zoglo's with the next generation of meat analogues and the ability to bring industry-leading texture, quality, and innovation to North America.
Zoglo’s said the facility is certified BRC, Kosher OU, Halal, ISF, and SMETA, so it is able to meet a wide range of consumer needs and customer demands. It has four production lines that can produce frozen, chilled, and ready-to-eat plant-based products and deliver complete packaging solutions.
Terms of MOU
Pursuant to the terms of the MOU, the company said it will acquire a 51% interest in Monday Swiss in consideration for the issuance of 9 million shares at $0.30 each and will pay $1,717,500 (Cash Payment).
The shares and cash payments will be made in three tranches beginning on the closing date and ending in April 2022. In addition, the company will make a loan to Monday Swiss on the closing date for $1,102,500 to fund the development of Monday Swiss' business.
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