Business
Upexi Signs Letter of Intent to Acquire Wellness and Nutrition Brand with Trailing Twelve Month Revenue of $15 Million and Positive EBITDA
Upexi expects to close the transaction in May.CLEARWATER, FL / ACCESSWIRE / April 13, 2023 / Upexi Inc. (NASDAQ:UPXI) (the "Company" or "Upexi"), a
About this update from Upexi, Inc.
[{"type":"text","content":"Upexi expects to close the transaction in May.CLEARWATER, FL / ACCESSWIRE / April 13, 2023 / Upexi Inc. (NASDAQ:UPXI) (the \"Company\" or \"Upexi\"), a multi-faceted Amazon and Direct to Consumer brand owner and innovator in aggregation, today announced the signing of a non binding Letter of Intent (\"LOI\") to acquire all the assets including working capital of a Texas-based wellness and nutrition brand specializing in the growing superfoods category (the \"Acquired Company\") with approximately $15 million in trailing twelve month revenue for $2.5 million in a combination of cash, stock and an earn out.Upexi CEO, Allan Marshall stated, \"This acquisition falls squarely in line with our strategy to acquire founder owned and operated, high margin, profitable brands. We see tremendous cost synergies and value in high margin, data rich brands in our non discretionary product category. Current market turmoil is presenting favorable opportunities for acquisitions and opportunities for Upexi's short and long term business growth. We will be opportunistic with a focus on maintaining our current growth trajectory through 2024 and beyond.\"Under the terms of the LOI, and pending due diligence, Upexi will acquire 100% of the assets or stock of the Acquired Company, including all tangible and intangible assets, any existing contracts, customer and vendor relationships, trademarks, patents, and leases. The purchase price at closing will be $2.5 million with additional stock consideration to be earned based on adjusted EBITDA performance. Of this, $2 million will be paid in cash and $500,000 will be paid in Upexi stock upon the closing of the transaction, with additional stock consideration to be earned based on specific Adjusted EBITDA performance. The purchase price assumes that the Acquired Company does not hold long-term debt and that it will transfer $1 million of working capital at closing.About Upexi, Inc.:Upexi is a multi-faceted brand owner with established brands in the health, wellness, pet, beauty and other growing markets. We operate in emerging industries with high growth trends and look to drive organic growth of our current brands. We focus on direct to consumer and Amazon brands that are scalable and have anticipated, high industry growth trends. Our goal is to continue to accumulate consumer data and build out a significan...