Transaction Enhances Cash Available to Invest in Profitable
Growth Opportunities
- Total purchase price of $500,000,
including $350,000 cash on closing,
and a $150,000 seller note, payable
to EMERGE in cash over 15 equal monthly installments
- Carnivore Club was a non-core asset, and EMERGE was actively
eliminating its revenue in 2024, while prioritizing the growth of
our larger, more profitable businesses
- Excluding Carnivore Club, the EMERGE portfolio exhibited
strong organic revenue growth and significantly improved
profitability in 2024 YTD
- Transaction bolsters EMERGE's cash position which exceeded
$3M at year-end, following the sale
of the Company's SHOP domains to Shopify
- EMERGE remains focused on its growing grocery and golf
businesses
TORONTO, Jan. 16,
2025 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM)
("EMERGE" or the "Company"), a premium e-commerce
brand portfolio, is pleased to announce that the Company and
subsidiaries of the Company (together, the "Sellers"), being
Carnivore Club LLC, a Georgia
limited liability company and Carnivore Club Subscription Box
Canada Inc., have entered into a definitive asset purchase
agreement (the "Agreement"), with Carnivore Club, LLC, an
Indiana limited liability company
and Carnivore Club, ULC, an unlimited liability company organized
under the laws of British Columbia
(together, the "Buyers"), pursuant to which the Sellers has
sold to the Buyers substantially all of the assets related to their
Canadian and US businesses (the "Transaction") for a total
purchase price of $500,000.
Ghassan Halazon, founder and CEO of
EMERGE, commented, "Our decision to sell Carnivore Club is
consistent with our stated objective to manage fewer, more
compelling long-term opportunities, while also strengthening our
cash position with the goal of driving both organic and inorganic
growth in 2025. Between our enhanced cash position, which exceeded
$3M to start the year, following the
recently announced sale of the SHOP domains to Shopify, and the
cash proceeds from the sale of Carnivore Club, EMERGE is now primed
to play offence again in 2025."
Pursuant to the Agreement and in consideration for the
Transaction, the Buyer has agreed to pay cash consideration
of $350,000 on closing of the Transaction
("Closing"), subject to certain closing adjustments, in
addition to issuing the Sellers a $150,000 seller note, payable to EMERGE in cash
over 15 equal monthly installments of $10,000.
As previously reported, Carnivore Club was considered a non-core
business for EMERGE, and management had actively been eliminating
its revenue to prioritize profit, and to focus on our larger
brands.
Following the Transaction, EMERGE's remains focused on its
growing grocery and golf brands including truLOCAL (premium
meat and seafood subscription), UnderPar (discounted golf
experiences), and JustGolfStuff (golf products and
apparel).
Excluding Carnivore Club, the EMERGE portfolio exhibited
strong organic revenue growth, and significantly improved
profitability in 2024 YTD.
The Transaction bolsters EMERGE's cash position which exceeded
$3M at year-end, following the sale
of the Company's SHOP domains to Shopify (NYSE: SHOP) for
approximately $536,000.
No finder's fees were be paid in connection with the
Transaction.
About EMERGE
EMERGE is a premium e-commerce brand portfolio in Canada and the U.S. Our subscription and
marketplace e-commerce properties provide our members with access
to unique offerings across grocery and golf verticals.
truLOCAL is our premium meat and seafood subscription service,
connecting local farmers with a digitally savvy health-conscious
audience. Our golf businesses include UnderPar, our discounted
tee-times/ experiences brand, and JustGolfStuff, our golf products
& apparel brand.
To learn more
visit https://www.emerge-commerce.com/
Follow EMERGE
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Cautionary notice
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Notice regarding forward-looking statements
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. In particular, this news
release contains forward-looking information regarding the
Transaction, the Agreement, and expectations regarding the
continued success of the Company's business operations and
strategies. Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may
differ materially from those contemplated by these statements. The
Company undertakes no obligation to comment on analyses,
expectations or statements made by third-parties in respect of the
Company, its securities, or financial or operating results (as
applicable). Although the Company believes that the expectations
reflected in forward-looking information in this press release are
reasonable, such forward-looking information has been based on
expectations, factors and assumptions concerning future events
which may prove to be inaccurate and are subject to numerous risks
and uncertainties, certain of which are beyond the Company's
control, including the risk factors discussed in the Company's
MD&A, Prospectus Supplement and Annual Information Form and are
available through SEDAR at www.sedar.com. The
forward-looking information contained in this press release are
expressly qualified by this cautionary statement and are made as of
the date hereof. The Company disclaims any intention and has no
obligation or responsibility, except as required by law, to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise.
On Behalf of the Board
Ghassan Halazon
Director, President and CEO
SOURCE Emerge Commerce Ltd.
