Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM, FRA:7AI) has followed up its London listing by completing the GBP10.2mln acquisition of Vitality CBD Limited, a market leader in cannabidiol products, as part of its ongoing buy-and-build strategy.
Vitality’s presence at mainstream retail outlets such as Boots, Tesco, Asda and Lloyds Pharmacy will add “a significant source of recurring revenue”, Yooma said.
The Birmingham-based business bagged sales of GBP1.6mln and underlying profits (EBITDA) of roughly GBP0.3mln in the first half of 2021.
The new addition will also expand the group’s target customer base and distribution network for its existing European-focused brands, including the MYO plant nutrition platform.
After floating on London’s AQSE Growth Market last week, Yooma has today acquired 100% of the issued shares of Vitality for an initial GBP4mln cash plus 7,706,422 new shares, representing GBP4.2mln at an implied price of 54.5p per share; and this could rise by up to GBP2mln in cash or shares based on revenue milestones for the 2022 financial year.
Chairman Lorne Abony said: “Completing the acquisition of Vitality is the first step of the strategic plan the company outlined to investors at the time of our UK financing and dual-listing – to buy and build companies globally, focused on materially increasing the company’s top-line revenue, leveraging the group’s integrated supply chain to drive margin growth, and expanding distribution for the existing product portfolio.
“This acquisition will help accelerate our growth by exporting these branded products to other Yooma jurisdictions and integrating with our MYO Plant Nutrition operations and distribution.”
Nikhil Nathwani, co-founder and managing director of Vitality, added: “The whole Vitality CBD team are excited to be joining the Yooma group. CBD is a growing industry not only in the UK but globally, and the acquisition positions us nicely to be able to continue to expand and grow the business.”