PlantX Life Inc said it has acquired majority equity interests in each of Eh Coffee Corp and Portfolio Coffee Inc from their respective shareholders in a cash and shares deal.
Vancouver-based PlantX said it plans to sell the companies' products on its online platform and at its physical locations. It will also exclusively use these curated beans to make the coffee beverages in its state-of-the-art cafes located in XMarket Squamish, XMarket Venice Beach, XMarket Hillcrest, XMarket Tel Aviv, and the two upcoming XMarkets located in Hudson's Bay stores (Yorkdale & Rideau).
By featuring the portfolio brand at the XMarket Cafés, PlantX said it can offer same-day delivery throughout Vancouver, Los Angeles, San Diego, Tel Aviv, Toronto and Ottawa.
READ: PlantX Life says grand opening event for its XMarket store in San Diego set for October 30, 2021
“PlantX will also leverage its e-commerce knowledge and distribution experience to bring Portfolio Coffee's e-commerce subscription to new heights, similar to PlantX's ramping of both the Bloombox Club and Little West businesses through the integration of a subscription-based model,” the company said in a statement.
PlantX noted that Eh Coffee and Portfolio Coffee source, roast, and distribute specialty coffees for a memorable farm to cup experience.
Headquartered in Toronto, Ontario, Eh Coffee sources specialty coffee beans from renowned family farms worldwide and custom roasts these harvests in Canada.
Branded "Portfolio" – Portfolio Coffee distributes these wide ranges of specialty coffees, featuring different roasts, flavour profiles and regions. Portfolio Coffee prides itself on its direct trade approach that empowers local farmers, and its direct-to-consumer green, sustainable packaging
PlantX said it plans on distributing globally through the continuation of the local Canadian EH Coffee roasting business, driving growth of Portfolio Coffee's subscription model for tailored coffee delivery, distribution of a wide range of Portfolio Coffee at PlantX's online platform, as well as launching cafés serving Portfolio Coffee in the brick-and-mortar XMarket locations.
"We are delighted to welcome the Eh Coffee and Portfolio Coffee teams to the fold of the PlantX family," PlantX CEO Lorne Rapkin said.
"Coffee is perhaps the most widely accepted plant-based product – and a universal drink to start our days.
“We are beyond thrilled to join together our teams to launch the Portfolio Coffee offerings roasted right here in Canada for a farm to cup experience of premium specialty coffees on the PlantX website, XMarket stores and future cafés,” he added.
PlantX said it will acquire 53.5% and 51% of the outstanding shares of Eh Coffee and Portfolio Coffee respectively for a purchase price comprised of 913,320 PlantX shares and an aggregate of $434,058.14 in cash.
The cash component was paid to the selling shareholders upon the closing of the transaction, along with 182,664 shares at a deemed issuance price of $0.4096. The remainder of the shares will be paid in four equal tranches of 182,664 shares over the four consecutive quarters following the closing date of the transaction.
It also agreed to pay an aggregate of $60,611.55 in fees to a professional adviser in connection with the deal, also in a combination of cash and shares.
PlantX Life styles itself as the digital face of the plant-based community with a one-stop destination for all things plant-based, like an online shop and meal delivery services.
The online shop houses over 5,000 vegan products, and its recently added meal service delivers chef-created dishes straight to the doors of Western Canada. All in all, the company offers more than 10,000 plant-based products.
Contact the author at stephen.gunnion@proactiveinvestors.com