Business
Easton Closes Purchase of Food Processing Company Specializing in Baked Goods with Projected Revenues Over $20,000,000 per Year and Positioned to Enter the Cannabis Edibles Market
Easton Closes Purchase of Food Processing Company Specializing in Baked Goods with Projected Revenues Over $20,000,000 per Year and Positioned to Enter the Cannabis Edibles Market.
About this update from Easton Pharmaceuticals Inc
[{"type":"text","content":"TORONTO, ON / ACCESSWIRE / April 24, 2019 / Easton Pharmaceuticals, Inc. (the "Company" or "Easton") (OTC PINK: EAPH) is pleased to announce that it has now officially closed on its acquisition of a food processing company based in Toronto, Canada.Easton has completed its acquisition of Supreme Sweets Inc. and 2498411 Ontario Inc. (collectively the "Acquiree"), which includes all the tangible and intangible assets of the company such as equipment, intellectual property (patents, trade secrets, formulas, etc.) and client lists of both Supreme Sweets Inc. and 2498411 Ontario Inc. The purchase was completed with a combination of cash and Easton stock. The Aquiree will be paid the stock the earlier of 3 years or based on revenue milestones being achieved.Easton saw an opportunity to acquire a company with a proven track record, but also major expansion opportunities that can potentially grow its sales to over an estimated $50,000,000 per year in baked goods. The Company expects its edibles division to reach $100 million in short order through the supply to major chains.The business operates from a 40,000 square foot certified facility in Toronto, Canada, and produces high quality traditional baked goods, including higher margin gluten free and keto products. The business supplies baked goods to major grocery chains in North America, as well as specialty coffee chains, under its own brands or as a contract packer. The acquisition is strategic for Easton to enter the Cannabis Edibles market and to supply premium Cannabis Edibles for various ailments through its existing distribution channels, while it continues to grow the traditional baked goods business with new specialty product launches. The Company is anticipating sales to reach $20,000,000 over the next 12 months with increasing margins once economies of scale begin to take effect. Further, Easton has signed an LOI with a licensed producer of Cannabis based in Toronto, Canada and is working towards completing a definitive agreement which will secure a legal supply of oil and flower for its product launches.Easton acquired the business from Barbara and Mario Parravano, the founders of Supreme Sweets, who have over 60 years of combined experience in the industry and have been innovators in the marketplace. "We are extremely excited to have comple...