Coho Collective Kitchens Announces Agreement to Acquire Purebread, BMO Credit Facilities, and Equity Financing Transaction

About this update from Purebread Brands Inc.

[{"type":"text","content":"Coho Collective Kitchens Announces Agreement to Acquire Purebread, BMO Credit Facilities, and Equity Financing TransactionVancouver, British Columbia--(Newsfile Corp. - May 29, 2023) - Coho Collective Kitchens Inc. (TSXV: COHO) (\"Coho\" or the \"Company\") is pleased to announce that it has entered into a definitive purchase agreement dated May 28, 2023 (the \"Purchase Agreement\") with Twin Lakes Investments Inc., Paula Lamming, Mark Lamming, Jack Lamming (collectively, the \"Vendors\"), Purebread. Bakery Inc. (\"Purebread\"), and Coho Acquisition Corp. for the purchase of Purebread.Under the Purchase Agreement, Coho Acquisition Corp., Coho's wholly owned subsidiary, will acquire all of the issued and outstanding securities of Purebread from the Vendors (the \"Acquisition\"). The Purchase Agreement provides for cash consideration of $10 million (subject to customary adjustments) (the \"Cash Purchase Price\") and the issuance of one million common shares of Coho (\"Common Shares\") with an aggregate value of approximately $220,000 (the \"Consideration Shares\" and, together with the Cash Purchase Price, the \"Purchase Price\") based on the closing price of the Common Shares ($0.22) on the TSXV on May 26, 2023. The Purchase Price will be paid to each of the Vendors based on the pro-rata ownership of Purebread immediately prior to Closing. Purebread and the Vendors are arm's length parties to Coho.About PurebreadPurebread is one of Canada's fastest growing and most respected independent bakery and cafe businesses. Purebread's existing team currently operates six locations and will work with Coho following the closing of the Acquisition (\"Closing\"). Following Closing, it is expected that Purebread's existing team will continue to operate the brand under its current name, with plans to expand operations nationally. Purebread is currently generating annual revenue of over $10 million1, with a strong profit margin and clear path to scale. A new location at the Vancouver International Airport is expected to open in June 2023, and it is expected this location could increase Purebread's annual revenue by as much as $3.5 million.Coho CEO Andrew Barnes commented, \"Through this acquisition, we will strive to expand Purebread's brand presence throughout Canada, leveraging Coho's established network to propel Purebread forward. We acknowl...

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