Odd Burger signs LOI to acquire Zoglo’s Food Corp
by CM staff
Zoglo's is a manufacturer in the plant-based consumer packaged goods industry in Canada with over 3000 distribution points across the country.
LONDON — Odd Burger Corporation has signed a non-binding letter of intent (LOI) with Zoglo’s Food Corp., to acquire 100 per cent of its issued and outstanding common shares and combine the businesses.
Zoglo’s is a manufacturer in the plant-based consumer packaged goods industry in Canada with over 3000 distribution points across the country. Zoglo’s products can be found at retailers including Walmart Canada, Metro, Food Basics, Sobeys, IGA and FreshCo. The Zoglo’s product includes non-GMO plant-based burgers, sausages, hot dogs, meat balls and chicken, with 12 SKUs currently being distributed to the Zoglo’s retail base.
With a successful acquisition, Odd Burger expects to gain access to Zoglo’s’ food manufacturing network in both North America and Europe, which may provide significant benefits to Odd Burger as it scales its operations internationally. Odd Burger plans to launch some of its own branded products into retail which is expected to be facilitated through the acquisition with Zoglo’s. Odd Burger would also provide Zoglo’s with access to its food service channels, which may provide a new revenue stream for Zoglo’s.
“This acquisition provides growth potential for both of our companies,” said James McInnes, CEO and co-founder, Odd Burger. “The retail distribution that Zoglo’s has is nearly unmatched in the plant-based retail space in Canada and I believe that we can leverage this distribution to both monetize our own products and also make Zoglo’s products even more successful in their category.”
Pursuant to the terms of the LOI, the companies will work to enter into a definitive acquisition agreement. The proposed transaction is subject to the satisfaction of certain conditions precedent and compliance with applicable TSXV policies.
Upon completion of the proposed transaction, the former Zoglo’s shareholders will hold approximately 25 per cent of the Odd Burger shares and the Odd Burger Shareholders will hold approximately 75 per cent of the Odd Burger shares.
