TORONTO, Ontario, November 24, 2019, Sire Bioscience Inc. (CSE:SIRE) (OTC:BLLXF) (FSE:BR1B) ("SIRE" or the "Company"), a Health Canada hemp license holder, announced today that it has signed an LOI to acquire all of the outstanding shares of Fusion Nutrition Incorporated ("FUSION").
FUSION’S network of 800 points of distribution include Sport Chek, Popeye’s Supplements, GNC Canada, and Supplement King. The $50.84B ** USD sports nutrition industry continues to grow with an expected CAGR of 9.7% to 2025*. This growth is primarily driven by the expansion from traditional core consumers (bodybuilders and elite athletes) to mainstream consumers (recreational athletes, fitness enthusiasts, and overall health and wellness seekers).
Pursuant to the LOI, Sire will acquire 100% of FUSION in consideration for the issuance of common shares of SIRE at a price per share price equal to the closing price of SIRE's shares on the trading day immediately prior to the closing of the acquisition, but in any event no less than $0.05 per share, for an aggregate transaction value of between $400,000 to $700,000.
With FUSION’s experience in the category, SIRE believes that it will be uniquely positioned to launch more relevant and highly customized products at a faster pace.
According to FUSION President, Ryan Herniman, the union of the CBD and sports nutrition industries is a natural fit. CBD, the non-psychoactive component of the cannabis plant, may have benefits in the reduction of pain and inflammation post-exercise, which may in turn aid in recovery and results.
“We’ve been studying the applications of cannabinoids for human performance for years and have always felt CBD would be a perfect pairing with our products,” explains Herniman. “With the advent of new regulations, this acquisition makes sense for both parties. SIRE has a team of experts in place to execute at a high level and we are thrilled to be a part of the vision.”
About Fusion Nutrition Inc.
Founded in 1998, FUSION is a Canadian-based, leading supplement company with national distribution. It currently hosts up to 12 brands, including some of the fastest-growing supplements in Canada and numerous category leaders sold in Canada’s top five retailers. FUSION products are developed using the latest research available, with the goal of providing maximum efficacy by supporting the human body in its own natural processes.
About Sire Bioscience Inc.
SIRE’s principal business activity is to engage in the investment, production of, and sale of hemp for CBD extraction. SIRE has its wholly owned facility in Leamington, Ontario. The land parcel includes 50 acres of prime horticultural land, with a 160,000 sq. ft. facility of combined greenhouse and indoor space. SIRE’s goal is to become a vertically integrated CPG life science company with its “House of Brands” offering.
SIRE is headquartered in Toronto, Ontario and is backed by a group of successful entrepreneurs who have extensive experience in the areas of manufacturing, logistics, and renewable energy.
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Sire Bioscience Inc.
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Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, the completion of the proposed acquisition of FUSION.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed in the Company's listing statement filed on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
* Grandview Research, 2019