Vancouver, British Columbia, February 24, 2021 – The Very Good Food Company Inc. (CSE: VERY) (OTCQB: VRYYF) (FSE: 0SI) (“VERY” or the “Company”) is pleased to announce that it has completed the acquisition of The Cultured Nut Inc., a highly popular artisan vegan cheese producer on the West Coast of Canada (“Cultured Nut”), with current sales distribution in several online and grocery retailers including select Whole Foods stores.
Cultured Nut is a plant-based cheese company with multiple innovative products in the market including block-style cheeses, cream cheese, and a plant-based butter, along with numerous products in development. VERY intends to rebrand Cultured Nut’s product line under a new brand called The Very Good Cheese Company which is expected to launch in Q2 2021 through VERY’s eCommerce and wholesale distribution networks.
Cultured Nut’s products current average wholesale price is $4.00 per unit and VERY intends to scale Cultured Nut’s existing production facility to over 100,000 units per month in 2021 with plans to scale production further in 2022. To ensure a successful business integration, the founders of The Cultured Nut and certain other key employees have entered into employment agreements with VERY and the transaction structure includes conditional payments based on the achievement of production and product innovation milestones.
The dairy alternatives market, including the plant-based and vegan sector, is expected to grow at a CAGR of 11.2% from 2020 to 2027 to reach US$44.9 billion by 2027. With the entire plant-based food industry growing at a rapid pace, the acquisition of the Cultured Nut is very timely and is an excellent complement to the Company’s existing product categories.
Mitchell Scott, CEO, commented: “The acquisition of Cultured Nut allows VERY to efficiently enter into the dairy alternatives space. This is a significant milestone in the realization of our long-term strategy of owning several brands under the banner of the Very Good Food Company in all major food categories providing consumers fun, innovative and healthier plant-based alternatives to everyday animal-based products.”
VERY completed the acquisition pursuant to a share purchase agreement with the shareholders of Cultured Nut for an aggregate purchase price of C$3,000,000; comprised of an equity payment of C$1,000,000 consisting of 139,676 VERY common shares at a deemed price of approximately C$7.15 per share and a cash portion of C$2,000,000 of which C$1,000,000 is contingent on the successful achievement of certain milestones related to the integration of the Cultured Nut’s business over a 12 month period and C$75,000 will serve as a holdback for indemnity purposes until August 31, 2021.
Products under the brand The Very Good Butchers currently sell in Canadian grocery stores and via eCommerce throughout North America. For photos and more information visit https://www.verygoodbutchers.com/a/press-kit (select “Canada”).
About The Very Good Food Company
The Very Good Food Company Inc. is an emerging plant-based food technology company. Its mission is to use progressive food technology to create plant-based meat and other food products that are delicious while maintaining a wholesome nutritional profile. For more information visit http://www.verygoodbutchers.com/.
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Edge Communications Group
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this news release includes, but is not limited to, the expected benefits to be derived from the acquisition, the Company’s ability to integrate Cultured Nut’s products into VERY’s existing product portfolio and the rebranding of the same, the Company’s ability to scale Cultured Nut’s operations, the expected growth rate of the dairy alternatives market, management’s expectations regarding the pricing and the number of units to be produced at Cultured Nut’s production facility, the Company’s ability to efficiently enter into the dairy alternatives space and the Company’s long-term strategy of owning several brands in all major food categories. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation, the ability of the Company to integrate Cultured Nut’s products into VERY’s existing product portfolio and to identify new innovative products. Other factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: negative cash flow and future financing requirements to sustain operations, dilution, limited history of operations and revenues and no history of earnings or dividends, competition, economic changes and the impact of and risks associated with the ongoing COVID-19 pandemic. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.