VANCOUVER, BC and
MESA, AZ, Feb. 20, 2014 /PRNewswire/ - Avidus Management
Group Inc. (TSX-V: AVD; "Avidus" or the "Company") is
pleased to announce that it has entered into an asset purchase
agreement (the "Agreement") with Akea, LLC ("Akea")
(www.akealife.com), pursuant to which the Company has acquired the
business assets of Akea, a network marketing company based in
Raleigh, North Carolina.
Completion of the transaction is subject to the final approval of
the TSX Venture Exchange ("TSXV").
Avidus' CEO, Doug Ridley,
commented, "In the 3rd quarter of 2013, we announced that Avidus
would implement a growth strategy that included acquisitions of
direct sales/network marketing companies. As our first such
acquisition, Akea brings a distributor and customer base with
substantial present value, as well as tremendous growth potential
and a complementary product of exceptional quality. We will be
introducing Asantae products to the Akea network and Akea products
to the Asantae network in the near-term. Akea joining the
Avidus family is the first of several growth initiatives
anticipated in 2014."
Akea's CEO, Munther Qubain, said,
"Over the past 4 years, we have built a solid product foundation
and have gathered loyal customers and distributors who have built
successful businesses. By joining forces with Avidus/Asantae, our
field organization will benefit from their corporate and field
leadership teams as well as their F.A.S.T. Track Business Building
System. We strongly believe this partnership will help
accelerate growth and enable us to better reach the masses with our
exceptional product."
Akea's primary product is a whole food, fermented supplement
sold through a growing network of 1,600 active distributors who
generated revenue of over US$2.2
million in 2013. Pursuant to the terms of the Agreement, the
purchased assets, which include, among other things, customer data,
intellectual property and software, will be acquired for an
aggregate purchase price of US$2,000,000, plus $279,414.74 for the physical assets, including
inventory (the "Acquisition"). The purchase price will be paid in
four parts as follows: $100,000 at
the effective date of the Acquisition (which has been advanced to
Akea); post-closing payments of $400,000 four weeks from the effective date of
the Acquisition; $1,500,000 paid
through royalties based on a percentage of monthly revenues, and
two equal payments for the physical assets to occur on August 1, 2014 and February 1, 2015. Pursuant to the Agreement,
closing of the Acquisition has been completed, subject to the
approval of the TSXV.
In connection with the Acquisition, the Company
also announces a non-brokered private placement of 8,000,000 units
(each a "Unit") at a price of $0.10
per Unit for gross proceeds of $800,000. Each Unit will be comprised of
one common share and one transferable common share purchase warrant
(each a "Warrant") of the Company and each Warrant will
entitle the holder thereof to purchase an additional common share
of the Company at an exercise price of $0.20 per share for 36 months from the closing of
the private placement.
The securities issued in connection with the
private placement and any shares issued in connection with the
exercise of Warrants will be subject to a statutory hold period of
four months plus a day from the date of issuance of the Units in
accordance with applicable securities legislation. Closing of
the private placement is subject to a number of conditions,
including receipt of all necessary corporate and regulatory
approvals, including the TSXV.
It is intended that the net proceeds of the
private placement will be used primarily to fund the post-closing
payments and costs associated with the Acquisition.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
About Avidus
Avidus Management Group Inc. (TSXV: AVD, OTC: ASNHF), based in
Mesa, Arizona, develops, acquires
and operates growth direct sales and network marketing companies in
the consumer health and wellness market. Avidus brands include
Asantae (www.asantae.com and Akea www.akealife.com).
The Avidus leadership team has a combined experience of 100
years in network marketing and direct selling. For more
information, visit www.avidusmanagementgroup.com.
Forward Looking Statements
Certain information in this news release is
forward-looking within the meaning of certain securities laws, and
is subject to important risks, uncertainties and assumptions. This
forward-looking information includes, among other things,
information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions, including
the completion of the Acquisition and the private placement of
Units. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and
expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the
Company's expectations as of the date of this news release.
The results or events anticipated or predicted
in such forward-looking information may differ materially from
actual results or events. Material factors which could cause actual
results or events to differ materially from such forward- looking
information include, among others, the Company's ability to develop
new products which will receive market acceptance, to receive
market acceptance in new markets outside the United States, to engage and retain
qualified key personnel, employees and affiliates, to obtain
capital and credit and to protect its intellectual property
rights.
The Company cautions that the foregoing list of
material factors is not exhaustive. When relying on the Company's
forward-looking information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. The Company has assumed a
certain progression, which may not be realized. It has also assumed
that the material factors referred to in the previous paragraph
will not cause such forward-looking information to differ
materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there
can be no assurance that such assumptions will reflect the actual
outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN
THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF
THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO
CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE
ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO,
IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME.
SOURCE Avidus Management Group Inc.