Vancouver, British Columbia--(Newsfile Corp. - March 15, 2021) - The Very Good Food Company Inc. (CSE: VERY) (OTCQB: VRYYF) (FSE: 0SI) ("VERY") is pleased to announce the strategic acquisition of the Lloyd-James Marketing Group Inc. ("Lloyd-James"), a boutique wholesale and food service broker specializing in the plant-based food industry with a history of placement in large natural, speciality and conventional grocery retailers such as Whole Foods, The Pattison Food Group, Sobeys, Metro, Loblaw and Walmart.
Since 2019, Lloyd-James has played an integral role in the development of VERY's distribution network into retailers such as Whole Foods, Sobeys, The Pattison Group and several others. This acquisition directly results in cost savings of 5% of future gross revenue due to the elimination of broker fees. In addition, LLoyd-James' team of national sales representatives, who have over seven years of experience in the plant-based food industry, will form VERY's internal Canadian retail sales team. This newly formed Canadian wholesale team will enable VERY to scale its retail network from 275 points of distribution at the end of 2020 to a target of greater than 2,000 by the end of 2021.
Lloyd-James also hosts a "Grocery Insights Program" that incubates new up-and-coming food businesses allowing them to scale and grow into larger retailers across Canada. VERY plans to select one to two participants per year to invest in and help develop for future research and development and brand acquisitions.
CEO Mitchell Scott commented: "Lloyd-James' core services and expertise in the plant-based food industry will add significant value to both VERY and our investors. By acquiring Lloyd James, we not only significantly save on broker fees going forward but now have a Canadian retail sales team whose focused approach to brand representation will help us further establish a national market presence."
VERY completed the acquisition pursuant to a share purchase agreement with the sole shareholder of Lloyd James for an aggregate purchase price of C$1,075,000; comprised of an equity payment of C$400,000 consisting of 62,329 VERY common shares at a deemed price of approximately C$6.42 per share and a cash portion of C$675,000 of which C$350,000 is contingent on the successful achievement of certain milestones related to the achievement of specific sales targets during the fiscal period ended 2021 and C$75,000 will serve as a holdback for indemnity purposes until August 31, 2021. All shares issued to Lloyd James are subject to a four month hold until July 12, 2021; in addition to a contractual lock-up terms pursuant to which the shares will be released from in equal quarterly instalments beginning on June 11, 2021 and ending on March 11, 2022.
About The Very Good Food Company
The Very Good Food Company Inc. is an emerging plant-based food technology company. Our 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. To date we have developed a core product line under The Very Good Butchers brand.
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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 benefits the Company expects to derive from the acquisition of Lloyd James including significant cost savings, an increase in distribution points and further establishment of the Company's national presence; and the Company's plans to invest in up-and-coming food businesses identified through Lloyd James' Grocery Insights Program. 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. 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 successfully integrate Lloyd James' sales representatives into the Company's operations. 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.