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Viking Gold picking up Happy Tea
Posted on Friday, 31 July 2020 10:13
Toronto-listed Viking Gold Exploration has signed on the dotted line for an agreement which could lead to the acquisition of Happy Tea, a provider of health and wellness supplements.

If the deal goes ahead, it would take the form of a reverse takeover, with the consideration to be in the form of shares.

It is expected that 34.47 million stocks will be issued as payment, at a value of CAD 0.25 (USD 0.19) each, thereby valuing the deal at CAD 8.62 million.

Following completion, Viking Gold will continue to operate Happy Tea in its current form, under the name Happy Supplements Inc.

In addition, the buyer is to carry out a non-brokered private placing of stock; the company will issue 2.00 million shares at CAD 0.25 each for gross proceeds of CAD 500,000.

Proceeds of the capital increase have been earmarked for the payment of transaction costs.

Completion of the acquisition is subject to the share issue closing, as well as approval from the TSX Venture Exchange and shareholders.

Happy Tea is active in the development of health and wellness supplements which contain CBD and other cannabinoids derived from industrial hemp.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 250 deals worth an aggregate USD 5.13 billion targeting medicinal and botanical manufacturers announced worldwide since the beginning of 2020.

Of the total value, USD 541.30 million is attributable to the sector’s largest deal of the year to date – Warburg Pincus’ acquisition of Polyplus-Transfection, which completed in late April.

It was closely followed by the USD 530.00 million takeover of US-headquartered UAS Laboratories by Chr Hansen Holding, which was announced in June.

Other companies in the sector to have been targeted worldwide this year include Lyell Immunopharma, Southern Shuanglin Bio-pharmacy and Qingyuan JDB Herbal Technology.

© Zephus Ltd