- Public investment fund, Blackhawk Growth (CSE:BLR) has agreed to acquire 51 per cent of NuWave Foods
- With a process that can extend the shelf life of baked goods, NuWave is set to become a leader in the shelf-stable food industry
- Blackhawk will issue 12 million common shares to NuWave’s existing shareholders, at 5 cents per share
- The acquisition is likely to occur on or around April 3, 2020
- Blackhawk’s share price remains steady, trading for 3 cents per share
Public investment fund, Blackhawk Growth (CSE:BLR) has entered into an agreement to acquire 51 per cent of NuWave Foods.
NuWave Foods is a fully licensed, commercial kitchen and baked goods manufacturer, in Edmonton, Alberta.
The company has a process which can create shelf-stable baked goods, without using any preservatives. NuWave can apply the process to essentially any baked product.
With COVID-19 sending millions of people into self-isolation at home, the demand for long-life and/or shelf-stable products has risen dramatically.
This process, combined with NuWave’s considerable contacts in the North American food industry, is the perfect recipe for success. Blackhawk is eager to invest in NuWave as the fast-growing shelf-stable food industry starts taking off.
In order to acquire the Acquisition Shares, Blackhawk will issue 12 million of its common shares to NuWave’s existing shareholders. Per the terms of the purchase agreement, the common shares will sell for 5 cents apiece. All the common shares issued for the acquisition will be subject a four-month-and-one-day statutory hold period.
Blackhawk has also agreed to provide up to $60,000 in funding, after the acquisition closes. This money will go towards expenses associated with certain equipment leases that are essential to NuWave’s operations.
Blackhawk will assume overall control of the business. NuWave’s existing management team will continue to hold responsibility for overseeing day-to-day operations, and applying Blackhawk’s intellectual property.
The acquisition, which is subject to customary closing deliverables, should occur on or around April 3, 2020.
Blackhawk’s share price remains steady, trading for 3 cents per share, as of 12:47pm EST.