The Company will purchase a 51% interest in SolDaze for total gross proceeds of USD$1,530,000 (CAD$2,028,565) (the “Purchase Price”) with an option to purchase the remaining 49% interest (the “Option”).
The Purchase Price is comprised of USD$450,000 (CAD$596,637) payable in cash with the balance payable through the issuance of common shares in the Company (“Consideration Shares”) based upon the greater of either: (i) CDN$0.30 per Consideration Share; or (ii) Consideration Shares priced at the 20-day volume weighted average trading price (“VWAP”) of the Consideration Shares for the 20 trading days immediately preceding three (3) business days before closing.
The Option shall be exercisable by the Company between the 24th month after the date of closing and ending on the 36th month after the date of closing. Should the Company choose to exercise the Option, the Company shall pay the sellers the value of six (6) times the EBITDA of SolDaze, in the form of either cash, Considerations Shares or a combination thereof at the time of closing.
Shawn Shelvin, CEO of SolDaze, commented, “We are excited to have Nutritional High come aboard as this strengthens SolDaze’s overall production, distribution, and know-how in our value chain. We look forward to working with the team at Nutritional High and creating synergies moving forward.”