PlantX to acquire assets from Liv Marketplace LLC

PlantX Life Inc. is pleased to announce that the Company, through its wholly-owned subsidiary, New Deli Hillcrest LLC ("New Deli Hillcrest"), has entered into an asset purchase agreement dated June 1, 2021 (the "Purchase Agreement") to acquire certain assets of Liv Marketplace LLC ("Liv Marketplace") for an aggregate purchase price of US$3,150,000 (the "Acquisition"). For further details about the Acquisition, please see "About the Acquisition".

California-based Liv Marketplace is the exclusive online fulfillment partner and retail distributor of PlantX products within the United States and is responsible for building and operating PlantX's 4,515-square-foot brick-and-mortar retail store in San Diego, California. Upon completion of the Acquisition, the San Diego location will be rebranded as New Deli by PlantX, as a Company-owned corporate location.

"The acquisition is an important component of the Company's expansion process as it highlights the successful progression of the Company's brick-and-mortar operations," said PlantX CEO, Julia Frank. "New Deli by PlantX in San Diego will be used as a central retail and meal delivery hub in the United States and we are excited to have added an additional corporate-owned location."

About the Acquisition

Under the terms of the Purchase Agreement, New Deli Hillcrest will acquire certain assets from Liv Marketplace for an aggregate purchase price of US$3,150,000. The purchase price will be satisfied by a combination of US$450,000 in cash and 5,916,436 common shares in the authorized share structure of the Company ("Consideration Shares") at an issue price equal to CDN$0.55 per share, representing the volume weighted average trading price of PlantX's common shares on the Canadian Securities Exchange (the "CSE") for the immediately preceding 10-day period. New Deli Hillcrest will also purchase an additional US$97,245.11 worth of inventory from Liv Marketplace. The Consideration Shares are subject to a 4 month statutory hold period in accordance with applicable Canadian securities laws. In addition, the Consideration Shares will be released in accordance with the following release schedule:

-10% of the Consideration Shares will be immediately released upon closing;

-15% will be released three (3) months from closing;

-15% will be released six (6) month from closing;

-15% will be released nine (9) months from closing;

-15% will be released twelve (12) months from closing;

-15% will be released fifteen (15) months from closing; and

-the remaining 15% will be released eighteen (18) months from closing.

Source: prnewswire