Plant&Co. Brands Ltd. announces it has acquired YamChopsTM, a Toronto producer specializing in the preparation, distribution, B2C and B2B sale of over 17 plant-based meats, including chicken, pork, fish. Yam Chops has featured on TV’s Dragons Den and was named NOW Magazine’s “Best Butcher & Best Deli” in Toronto.
Following the groundbreaking success of The Very Good Butcher, which successfully launched on the Canadian as well as US stock markets last year, it can be assumed that Yam Chops has been eyed as the next vegan butcher success in line.
Operating for over 12 years, YamChops has a retail location in Toronto’s food district and its products including Tunaless “Tuna”, Chick*n Schnitzel, Szechuan “Beef”, Montreal Style “Steak”, see popular demand on four of the most popular food delivery platforms: Uber Eats, Skip the Dishes, Corner Shop and Ritual One.
“The acquisition of YamChops was part of the company’s M&A strategy to instantly arrive at the point of in-market sales of a known, trusted and established plant-based brand. This acquisition is truly transformational in adding to our growing portfolio of plant-based products and companies,” said Shawn Moniz, CEO of Plant&Co. Brands. “With over a decade of product development, preparation, trademarks and distribution experience in the emerging plant-based food market, YamChops is known for its high-quality foods that taste great and customer service that is second to none, placing Plant&Co. in a leading position in the plant-base sector. Creating delicious plant-based foods that compete with meat is an art form which the YamChops’ team has perfected. We have a great opportunity to leverage the recent growth in popularity of these healthy meat and dairy product alternatives and expand our newly acquired business across North America and beyond.”
Plant&Co’s strategy is to utilize the existing distribution networks and B2B relationships for large and bulk ordering of plant-based product already in place with nation-wide distributors, such as Grande Cheese, United Natural Foods Inc (UNFI), Whole Foods, London Drugs, Organic Garage, Nature’s Emporium, Choices Markets, The Big Carrot, Natural Foods Ambrosia, and Natures Fare Markets, to rapidly grow and expand the 17 proprietary plant-based products of YamChops to new and emerging markets not only in Canada but to the explosive US markets. YamChops currently has B2B distribution to Sobey’s London, Pusateri’s, and Nature’s Emporium.
“Our new YamChops team will work closely with our Holy Crap team and advisory board to leverage the physical and digital footprints of each company’s existing customer following (numbering in the tens of thousands of customers unique to each brand). By marketing a consolidated umbrella of products through targeted sales channels and new and established footholds in the emerging plant-based North American markets, we will be able to cross-pollinate resources and amplify sales within Plant&Co’s family of brands and products,” continue Mr. Moniz.
On January 18, 2021, the Issuer entered into a definitive share purchase agreement (the “Agreement”) with 2574578 Ontario Inc. (“257”) and JDB Innovations Ltd. (“JDB”, and together with 257, “YamChops”) and each of the shareholders of YamChops (the “Vendors”) to acquire all of the issued and outstanding shares of YamChops (the “Transaction”).
As consideration for the Acquisition of YamChops, the Company (i) made an aggregate cash payment of $608,446.26 to the Vendors (the “Cash Payment”); (ii) issued 344,828 common shares to the Vendors (the “Consideration Shares”); and (iii) settled certain outstanding debts of YamChops held by third-parties in the amount of $161,553.74 (the “Debt Settlement”). The Consideration Shares are subject to voluntary pooling restrictions from which 100% of the Consideration Shares will be released on February 17, 2021.
The Company is at arms-length from YamChops and its shareholders. The Transaction neither constitutes a fundamental change nor a change of business for the Company, nor has it resulted in a change of control of the Company within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. In connection with the completion of the Transaction, the Company has issued 109,589 common shares to an arms-length third party who assisted with facilitating the Transaction.
The Company also announces it has granted incentive stock options to purchase a total of 750,000 common shares at an exercise price of $0.78 per share for a period of two years to certain directors and officers in accordance with the provisions of its stock option plan.