VANCOUVER, British Columbia, February 17, 2021 (GLOBE NEWSWIRE) – PureK Holdings Corp. (the “Companies“or”PureK“) (TSX Venture: PKAN) is pleased to announce that it has reached a definitive agreement (the”approval“) With Felicity Management Group LLC, Rhodes Management Corp. and 2443904 Ontario Inc. (together the “Seller“) To acquire all outstanding membership shares in Nirvana Group, LLC (“nirvana“), A Florida-based company that specializes in the development, manufacture and distribution of natural wellness products for pets and that owns the BudaPets brand.
According to a recent report from Fior Markets, the global pet care industry is expected to be valued at around $ 358.6 billion by 2027, with a compound annual growth rate (CAGR) of six percent.1 Another recent report by Mordor Intelligence found, That Significant Opportunities Exist The US pet care market continues to expand as consumer demand for natural pet products continues to grow. Consumers are becoming more and more aware of keeping their pets healthy.
The BudaPets brand complements the existing pet care portfolio of the company, which includes PureKana Pet, a division of market-leading CBD company PureKana, LLC (“)PureKana“). As previously announced in a press release dated February 1, 2021, PureK and PureKana recently reached a definitive agreement to acquire No BS Skincare, the industry leader in skin care and beauty care with clean formulas. The Company’s proposed acquisition of both brands aims to break into some of the fastest growing global market categories.
“We are excited to add the BudaPets brand to the PureK Holdings portfolio to address a wider customer base and the wellness needs of their best friends,” said Kathy Casey, CEO of PureK. “BudaPets fits perfectly with PureK Holdings’ growth strategy, which focuses on the global animal care, skin care and plant-based foods and beverages categories. BudaPets is now joining the PureKana and No BS brands to lead innovation in categories where nature meets science. “
BudaPets’ line of products includes products from Calming, Hip and Joint, Omega Bites and Dental Chews. All BudaPets products are made with the highest quality CBD from hemp extract and natural ingredients to improve the quality of life for pets and farm animals. All BudaPets products are made and processed in the USA and are subject to strict manufacturing standards. In January 2020, BudaPets received NASC (National Animal Supplement Council) certification for its line of natural hemp supplements, one of the highest certifications in the animal care industry.
“We are very excited to join PureK Holdings Corp. and their growing family of natural, plant-based wellness brands,” said Diana Albadan, founder of BudaPets. “We are committed to promoting the well-being of pets by developing high quality natural products that are science taught. BudaPets is excited to partner with the PureK Holdings Corp. family of brands. to work together to bring both animal health and natural wellness products to consumers on a unique platform. “
Under the terms of the agreement, PureK will acquire all issued and outstanding membership units from Nirvana, including the BudaPets brand. PureK will issue US $ 1.5 million unsecured convertible bonds at 3.25% interest per year with a maturity date that is twenty-four (24) months after the closing date (the “Due date“). As part of the convertible bond, the sellers have the option of converting part of the convertible bonds into ordinary shares of the company on a monthly basis (“Common stock“) At a price equal to or greater than (i) the 15-day volume-weighted average price of the common stock on the TSX Venture Exchange at the time of conversion; or (ii) CAD 10.50. Some or all of the convertible bonds that have not been converted into common stock are payable in cash on the due date.
In addition, current Nirvana members are entitled to earn-out consideration of $ 500,000 payable in common stock for fiscal 2021 sales of Nirvana products of $ 1 million or more, plus an additional in Common stock payable for $ 1 million if sales of Nirvanas products for fiscal 2022 exceed $ 2.5 million. The transactions are carried out on market terms and, apart from the issue of the unsecured convertible bonds mentioned above, no long-term debt will be accepted. Completion of the acquisition is subject to customary closing conditions, including the approval of the TSX Venture Exchange.
About PureK Holdings Corp.
PureK Holdings Corp. leads an international omni-channel platform with diversified assets in the emerging categories of herbal and holistic wellness consumer goods. The company’s mission is focused on leading innovation for the informed Millennial and Generation Z generations in the rapidly growing field of plant-based, natural and clean ingredients. The company continues to focus on expanding into high-growth consumer product categories such as CBD products, plant-based foods and beverages, and the global pet care and skin care industries. For more information on PureK Holdings Corp. can be found at https://purekana.com/investor-relations/.
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Forward-looking statements and information
Certain statements contained in this press release constitute “forward-looking information” and “forward-looking statements” as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates made by management at the time the information was provided and are subject to certain factors and assumptions, including the fact that the company’s financial position and development plans will not change due to unforeseen events and that the company will not change the Receives regulatory approval. PKAN’s obligation to close is subject to the approval of the TSX Venture Exchange and the standard closing conditions for such transactions, including but not limited to (i) accuracy of statements and warranties and compliance with covenants and obligations, (ii) no material adverse effect, (iii) the absence of litigation, injunctions, injunctions, or other legal restrictions; and (iv) obtaining required governmental and regulatory consents, legal opinions, certificates from officials and secretaries, (v) other customary closing documents and terms. Forward-looking statements and information are subject to a number of risks and uncertainties and other factors that could cause plans, estimates and actual results to differ materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this press release to change or be inaccurate include, but are not limited to, the risk that any of the assumptions made above will prove to be invalid or reliable, such as the above will materialize and result in delays or suspension of planned work, changes in the company’s financial position and development plans, and delays in regulatory approval, as well as the other risks and uncertainties that apply to the CBD industry and company, as detailed in the filing statement of the Company in relation to its Qualifying Transaction filed under the Company’s profile at www.sedar.com. The company assumes no obligation to update the forward-looking statements and information unless required by law.
Neither the TSX Venture Exchange nor its regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
1 https://www.globenewswire.com/news-release/2020/09/28/2099985/0/de/Global-Pet-Care-Market-Is-Expected-to-Reach-USD-358-62-billion -by-2027-Fior-Markets.html
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