PlantX Life Inc. (CSE:VEGA) has announced that it will acquire, through its wholly-owned PlantX USA subsidiary, the online domain www.veganessentials.com and certain associated intellectual property and assets from Veji Holdings Ltd in a cash-and-stock deal valued at C$900,000.
The digital one-stop shop for plant-based products said the purchase price will consist of C$150,000 in cash plus 1,071,428 post-consolidation PlantX common shares issued at C$0.70 per share.
“Known for great prices, the largest selection, fast service, and worldwide shipping, Vegan Essentials has built a strong reputation throughout the vegan community as an online superstore,” PlantX Life CEO Lorne Rapkin said in a statement.
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“Historically, the e-commerce store has stocked over 2,100 different cruelty-free items representing one of the largest selections of plant-based cheeses, meats, treats and more in the United States,” Rapkin added.
PlantX noted that Vegan Essentials was awarded best online vegan store from 2005-2018 and best online vegan grocery from 2018-2021 by VegNews Magazine.
It added that the veganessentials.com domain performs extremely well with organic search due to its strong brand name and comes with an extensive customer database.
As well, the company reported that its board of directors has approved a share consolidation on a 20-for-1 basis, which would result in PlantX having 10,048,329 issued and outstanding common shares on a non-diluted basis.
The consolidation is a condition to the completion of the veganessentials.com acquisition, PlantX said.
Completion of the acquisition, which is expected to occur no later than October 15, 2022, is subject to a number of customary closing conditions and the shares issued are subject to a four-month hold period in accordance with applicable Canadian securities laws and the policies of the Canadian Securities Exchange, according to the company.
PlantX Life is the digital face of the plant-based community, operating a one-stop shop for plant-based products.
Contact Sean at sean@proactiveinvestors.com