Business
Disposal of the IP of T-Juice
Disposal of the IP of T-Juice.
About this update from Supreme Plc
[{"type":"text","content":"\n \n \n 14 March 2023\n \n \n \n Supreme plc\n \n \n \n \n (\"Supreme,\"\n \n the \"Company\" or the \"Group\")\n \n \n \n \n \n \n \n \n Disposal of the IP of T-Juice\n \n \n \n \n \n \n \n \n - \n \n €4.5 million upfront payment for the IP of T-Juice brand and ongoing consultancy services provides additional financing for the Group;\n \n \n \n - \n \n New strategic partnership for exclusive manufacturing rights to T-Juice brand;\n \n \n \n - \n \n A minimum of €15 million of revenue over five years under partnership, with adjusted earnings profile of the Group largely unchanged following these arrangements.\n \n \n \n \n \n \n Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer products, is pleased to announce it has entered into an agreement for the disposal of the intellectual property (\"IP\") of T-Juice (including the Red Astaire brand), to an associated company of La Vape Professional Distribution (\"LVP\"), one of France's largest wholesalers of electronic cigarettes and e-liquids with €4.5 million payable on completion.\n \n \n \n \n \n Supreme and LVP have entered into a new strategic partnership under which Supreme retains the exclusive manufacturing rights to T-Juice with minimum €15 million of revenue over five years\n for Supreme\n (together \"the Agreements\"). Consequently, the adjusted earnings profile is largely unchanged following the Agreements. The brand was originally acquired as part of the Cuts Ice asset deal which completed in August 2022 where the total value of the intangible assets acquired was £1.4 million.\n \n \n \n \n \n \n Strategic Rationale\n \n \n \n \n \n \n ·\n The Agreements enable Supreme to focus on its core manufacturing expertise and margin expansion\n \n \n ·\n De-risks both European distribution and expansion, while simplifying Supreme's costs to serve to one customer,\n LVP\n \n \n ·\n Under the Agreements, Supreme retains the flavour development and flavour manufacturing responsibility, ensuring it continues to generate supply chain synergies as originally outlined\n \n \n ·\n A strategic partnership with LVP provides future cross-sell opportunities for the wider Supreme portfolio\n \n \n \n \n \n \n \n \n Sandy Chadha, Chief Executive Officer of Supreme, commented:\n \n \n \n \n...