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Be the first with the news that moves the market- Mondias Natural Products (NHP) has signed a letter of intent, through its subsidiary SetPoint Beverages, to acquire Érablier Inc.
- Start-up company Érablier has developed a beverage derived from sugar maple tree sap
- Mondias will pay a total of C$75,000 to Érablier – C$50,000 on closing and C$25,000 with the transfer of technology
- A 4 per cent royalty on annual sales will also be included, up to C$1,000,000
- Shares in Mondias are currently up 17.24 per cent to C$0.17, with a market cap of C$10.73 million
Mondias Natural Products (NHP) has letter of intent to acquire start-up beverage company Érablier Inc.
Based in Quebec, Érablier has developed a premium beverage made from the organic water derived from sugar maple tree sap, which will be put through rigorous market testing over the coming months.
According to industry reports, consumer demand for maple water surpassed 16 million liters in 2018, and demand for maple water-based drinks are thought to follow suit.
The rise in popularity comes with the growth of an increasingly health-conscious population seeking alternatives to the sugary beverages that have been most popular in the past.
“This strategic acquisition represents an excellent opportunity to enter the vibrant health and wellness beverage space using a natural and organic product obtained from Québec,” said Mondias CEO, Dr. Patrick Frankham.
“Maple water is a unique natural product that is harvested by sophisticated and large-scale methods from which we obtain our starting material to create natural products for consumers.”
Consideration for the deal will consist of C$75,000 cash – C$50,000 on closing and C$25,000 with the transfer of technology – and a 4 per cent royalty on annual net sales.
Royalties will be capped at an aggregate of C$1,000,000 and is expected to be paid with 75 per cent in cash and the remaining 25 per cent in common shares in the capital of Mondias.
No date has been given for the expected closure of the acquisition, and the agreement is still subject to Mondias’ due diligence as well as both board and regulatory approval.
Shares in Mondias are currently up 17.24 per cent to C$0.17, with a market cap of C$10.73 million.
