The North American market for herbal and sustainable products online Vejii has agreed to purchase the online wholesale platform VEDGEco USA.
Under the terms of the share purchase agreement, Vejii will purchase 100% of the issued and outstanding shares of VEDGEco for $ 6.25 million, subject to certain conditions.
On the closing date of the transaction, it will issue $ 3.5 million of Vejii common stock to VEDGEco shareholders.
In addition, Vejii will issue earnouts of up to $ 2.75 million, payable in common shares, to VEDGEco shareholders when VEDGEco reaches certain defined milestones.
Vejii COO Darren Gill said: âThe acquisition of VEDGEco will allow us to add a new source of revenue while increasing our purchasing power and margins with major brands, and also adding considerable value. for brands on our platform.
âAs restaurants and grocery stores expand their herbal offerings, we will be strategically positioned to serve them while helping herbal brands grow their businesses by providing these brands with access to national distribution through the platform. -VEDGEco wholesale form. “
Launched last year, VEDGEco distributes products of plant origin. It has facilities in Hawaii, Northern California and Georgia.
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The deal will strengthen Vejii’s offering and generate synergies for both companies in terms of logistics, technology, customer service and more.
Vejii has facilities in Texas, Wisconsin. Its third-party logistics operation in Southern California is expected to become operational soon.
Following the completion of the transaction, key VEDGEco personnel would continue to manage business operations.
Based on compliance with customary closing conditions, the acquisition is expected to close on or around December 31 of this year.