Business
Coho Collective Kitchens Announces the Closing of Its Acquisition of Purebread
Vancouver, British Columbia--(Newsfile Corp. - September 20, 2023) - Coho Collective Kitchens Inc...
About this update from Purebread Brands Inc.
[{"type":"text","content":"Coho Collective Kitchens Announces the Closing of Its Acquisition of PurebreadVancouver, British Columbia--(Newsfile Corp. - September 20, 2023) - Coho Collective Kitchens Inc. (TSXV: COHO) (\"Coho\" or the \"Company\") is pleased to announce that it has closed the strategic acquisition of Purebread. Bakery Inc. (\"Purebread\") that was initially announced on May 29, 2023 (the \"Acquisition\"), along with concurrent debt and equity financing transactions. Purebread is one of Canada's most respected bakery and cafe businesses.The final terms of the Acquisition were most recently announced on September 12, 2023. The purchase price was paid through a combination of $8.5 million cash on closing (subject to customary adjustments for indebtedness and working capital), a $1.5 million vendor-take-back note, and the issuance of 1,000,000 common shares of Coho (\"Common Shares\") to a vendor of Purebread.Going forward, Purebread will operate as a wholly owned subsidiary of Coho, with its own operational and management teams. However, Coho will provide marketing, sales, and financing support to Purebread, helping Purebread increase market penetration, develop new markets, and ultimately deliver their exceptional baked goods to more happy customers. Coho will also leverage its growing shared kitchen footprint to rapidly scale Purebread's growth through a hub and spoke model.Coho's CEO, Andrew Barnes, expressed his vision for the acquisition, stating, \"With this strategic move, we are committed to enhancing Purebread's footprint across Canada. Leveraging Coho's well-established network, we aspire to propel Purebread to new heights. We recognize the remarkable efforts put in by the Purebread team in building both the brand and the business, and our goal now is to expand its influence further.\"Paula Lamming, co-founder of Purebread, commented, \"Purebread is excited to be part of the Coho family and about the opportunities that lay ahead for the combined company. We believe Coho's industry experience, relationships, and access to potential new locations will help Purebread build on its historical success.\" Co-founder, Mark Lamming, added, \"We're pleased that customers in new markets will have the chance to experience Purebread's high-quality baking as the business continues to expand under Coho's stewardship.\"Acquisition Summary In July 2...