October 25, 2017 – MONTREAL, QUEBEC – Relevium Technologies Inc. (TSX.V – “RLV” and Frankfurt: “6BX”) (the “Company” or “Relevium”), a publicly traded corporation strategically focused on the acquisition and building of e-retail brands, products and technologies in the health and wellness market, is pleased to announce that it has signed a non-binding Letter Of Intent (the “LOI”) to acquire an American based nutraceutical brand that sells products direct to consumers primarily through the Amazon.com channel in the Vitamins and Dietary Supplements category. The transaction value is currently estimated at US$1.35 million, which shall be subject to adjustment based upon a multiple of earnings before income taxes.
- Non-binding LOI for a Nutraceutical brand
- Targeted to close by November 30, 2017
- RLV Executes on guidance issued August 2, 2017
Subject to the positive outcome of a short due diligence period, the negotiation and execution of a mutually satisfactory definitive acquisition agreement and TSX Venture Exchange approval, management estimates that the transaction should close around November 30, 2017. Pursuant to regulatory guidelines, further financial details and related fees regarding the acquisition will be disclosed at the closing of the transaction. The Company does not anticipate the need for outside capital in order to close the transaction as the consideration is expected to consist solely by the issuance of additional equity of the Company which shall be subject to a vesting schedule and associated targets. The Company does not anticipate that a new control person will be created as a result of the proposed transaction.
Once closed, it is intended that the acquired assets will be transferred to Relevium and the operations will be integrated into the current operations being managed by the Company.
Aurelio Useche, President and CEO of Relevium Technologies stated: “We have been diligently looking at accretive assets to add to our portfolio since the acquisition of BioGanix and we are very pleased to execute another line item from our 2017 guidance laid out on August 2, 2017.”
Mr. Useche continued: “Once closed, this transaction will further demonstrate Management’s ability to execute on the M&A strategy and should contribute to top line revenue and EBITDA for Fiscal 2018. Operationally speaking we are ready to continue acquiring, integrating and optimizing brands. The current M&A pipeline remains very healthy and in line with previously stated numbers. We look forward to concluding more transactions on an aggressive schedule.”
About Relevium Technologies
Relevium is a TSXV listed company focused on growth through the acquisition of businesses, products and/or technologies with a focus on e-commerce in the growing health and wellness sector. Relevium Technologies Inc. also holds patented intellectual property for the use of static magnetic fields for application on wearable devices.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Readers should not place undue reliance on forward- looking statements and forward-looking information and are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
President and CEO
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