Dec. 15, 2017
Vegalab US ("the Company"),has announced the purchase of substantially all of the assets related to a produce packaging business located in Tulare County, California (the "Business"). The acquisition, which closed on October 18, 2017, consisted of the purchase of approximately 11 acres of real property and 30,000 sq. ft. of buildings from M & G Farms, Inc., a California corporation, and all of the equipment, inventory, customers, suppliers, contract rights, and intangible property from M&G Packing, Inc., the California corporation that operated the Business. The total purchase price for the Business, including closing costs, was $854,452. The Company purchased the Business with $425,000 down and the balance on an 18-month promissory note with interest at 6%. The Business, located in the middle of a citrus growing region near Fresno, CA, has been packing mainly oranges and lemons for about 13 years, and will be operated as M&G Packing, LLC, a wholly owned subsidiary of the Company ("M&G").
David Selakovic, CEO of Vegalab Inc., stated, "We acquired M&G to facilitate our long term strategic and financial growth. With several of M&G's customers already using Vegalab's all natural products to maximize the yield and increase the number of premium quality fruits produced in their citrus groves, we believe this acquisition will produce tremendous synergies between our packing business and our all-natural agro-chemical business. By seamlessly integrating the entire process from planting to packaging; by supplying growers with products that increase their yields of premium quality fruits; by packing their fruits efficiently; and by giving them access to our network of international buyers who pay the highest prices for premium quality citrus, we expect to grow both businesses rapidly."