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4 August, 2021
Levitee Labs completes acquisition of superfoods provider Earth Circle Organics Chain
The company issued 488,702 shares at C$0.51 each and paid US$1,675,000 in cash on closing, with an additional US$125,000 having been previously paid as a deposit
Headquartered in Las Vegas, Earth Circle Organics is a direct-to-consumer (DTC) and wholesaler of supplements and superfood products. It operates primarily in the US, but it also has a presence in Canada.
For the acquisition, Levitee said it issued 488,702 shares at C$0.51 each and paid US$1,675,000 in cash on closing, with an additional US$125,000 having been previously paid as a deposit.
The company said it may also be required to pay up to an additional US$500,000 under an earn-out mechanism based on gross revenue generated by Earth Circle Organics in the six months following closing.
Earth Circle Organics sells a robust portfolio of organic products, including Ayurvedics, nuts, seeds, berries, coconut oil, premium Himalayan pink salt, chlorella powder, fulvic acid, Nori seaweed, and much more, through multiple distribution channels. Many of its products sold on Amazon.com have high consumer ratings.
With more than 180 SKUs across three brands, Levitee said Earth Circle Organics achieved over US$2 million in revenue in the past 12 months, with approximately US$600,000 in EBITDA.
Levitee said it plans to integrate the Earth Circle Organics brands with the company’s MONKE Nutraceuticals products to leverage supply chain and distribution synergies and accelerate growth by increasing ad spend and inventory levels. Levitee also intends to finalize new distribution agreements that will place all the brands in additional brick-and-mortar retail stores across the US and Canada.
“We are very pleased to close the acquisition of our sixth cash-flowing asset. The Earth Circle Organics portfolio of brands fits perfectly into our model as a vertically integrated wellness company with operations and distribution networks throughout North America,” said Levitee CEO Pouya Farmand in a statement.
“Work has already begun in collaboration with the existing Earth Circle Organics management team on transitioning the products under our umbrella and leveraging synergies to implement aggressive growth initiatives in the vertical.”
The company said the previous co-owner of Earth Circle Organics, John Ward, has agreed to continue to run the operations six months after closing to ensure continuous business operations and a smooth transfer of the business to Levitee.
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