Vejii Holdings (CSE:VEJI) Ltd told investors it has completed the acquisition of VEDGEco USA Inc, a leading online business-to-business (B2B) wholesale platform for plant-based products.
The total purchase price for the acquisition, which closed on December 31, 2021, was US$6.25 million, the Vancouver-based company added.
"I would personally like to thank our advisors and team members on both sides who worked tirelessly over the holidays to ensure we close this transaction before year-end,” CEO Kory Zelickson said in a statement.
“This allows our new combined teams to hit the ground running in 2022, and focus on growing our businesses and onboarding new customers and products to our platforms.”
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Vejii said the acquisition is expected to drive synergies across purchasing, customer service, technology, and logistics for both companies. Vejii will also be able to leverage VEDGEco's existing facilities in Hawaii, Northern California and Georgia, while providing VEDGEco with access to its facilities in Texas, Wisconsin, and its soon-to-be operational third-party logistics operation in Southern California. It said this will expand its distribution network, reduce shipping costs and expand its offering of regionalized same-day delivery.
In addition to providing VEDGEco's existing offering of wholesale plant-based products, Vejii said it will now have the ability to significantly increase VEDGEco's product selection by leveraging its existing case-lot, purchasing and expanding the range of products on its platform through VEDGEco.
"Between going public and completing our acquisition of Vegan Essentials and then VEDGEco, 2021 closed on a high note for us," Vejii president and chief operating officer Darren Gill added.
"I feel we have proven our ability to execute our plans and objectives, getting two deals closed in two months, and the stage is now set for growth in 2022 as Vejii will be able to service our brand partners through our direct to consumer marketplace and business to business through the addition of VEDGEco.”
VEDGEco's key personnel are expected to continue running its operations while Zelickson and Gill have joined the board of directors of VEDGEco, Vejii added.
Under the purchase agreement, Vejii issued the vendors an aggregate of 12,865,000 common shares of Vejii with a deemed value of US$3.5 million, or C$4.5 million, based on a price per consideration share of C$0.35. The remainder of the purchase price is payable in earn-out payments up to a maximum of US$2.75 million, also payable in common shares.
Contact the author at stephen.gunnion@proactiveinvestors.com