Holy Crap's brands include plant-based, gluten free and kosher products that are available across Canada at retailers like Whole Foods
Inc () (OTCPINK:EURPF) has announced plans to acquire Holy Crap Brands Inc, makers of the popular granola that was first introduced to Canadians on CBC’s Dragon’s Den.
Holy Crap has since expanded its line to include plant-based, gluten-free and kosher products that are available across Canada at retailers like Whole Foods and Save-On-Foods.
The acquisition is a three-cornered amalgamation that results in Holy Crap becoming a subsidiary of EuroLife, which yesterday announced plans to rebrand itself as Plant & Co Brands.
READ: EuroLife Brands to change name to Plant & Co Brands to reflect its focus on the booming health and wellness sector
Under the terms of the roughly C$8.7 million deal signed on November 25, EuroLife’s wholly-owned subsidiary will amalgamate Holy Crap into its business in exchange for 28 million EuroLife shares (which were worth around C$0.31 on Wednesday) in exchange for one Holy Crap share held. In addition, EuroLife will issue four million warrants exercisable at C$0.40 under the same terms as existing Holy Crap warrants. The amalgamated company will become a wholly-owned subsidiary of EuroLife.
EuroLife CEO Shawn Moniz hailed Holy Crap’s “unforgettable” name and product quality.
“The acquisition of Holy Crap Brands Inc. will be the second plant-based business we have acquired and is part of our continued growth strategy within the health and wellness sector in Canada," Moniz said in a statement accompanying the news.
"We look forward to taking this unique brand in the health and wellness sector to greater heights. We have an aggressive plan for revenue growth and will continue to look for opportune acquisition targets in North America."
Holy Crap’s CEO Derek Ivany called the deal a natural evolution in the company’s development.
“Increasing our company's exposure to both investors and consumers will greatly enhance our brand and expansion opportunities,” Ivany told investors. “Uniting the teams at Holy Crap and EuroLife has numerous synergies which will provide a very bright future in the plant-based food space which is growing exponentially."
The brand generated approximately C$340,000 in revenue in the last six months, according to the release. The deal remains subject to shareholders approval.
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