Colombian Juice & Chocolate Vendor Kasa Wholefoods S.A.S. To Be Purchased By Canada’s Flora Growth Corp.
Canada based Flora Growth Corp. has announced that it has entered into a letter of intent to acquire a 90% equity interest in Colombian juice producer Kasa Wholefoods Company S.A.S. Kasa produces exotic Amazonian fruit juices and chocolates under the “Mamba” brand in Colombia.
Caution: As of 13 January 2020, Finance Colombia has been unable to verify any information regarding Flora Growth Corp.
Kasa markets fruit juices and pulps from organic exotic fruits such as mango, acai, passion fruit (maracuyá), camu camu, copoazú and guava, as well as more commonly used fruits such as bananas, strawberries, oranges and apples. Kasa also produces chocolate confectionery using 70% Colombian cacao.
Over the last year, Kasa has been researching and developing CBD (cannabidiol)-infused juices and chocolate, and already has a line of CBD-infused juices (10 mg CBD/250 ml of juice) and chocolate bars (40 mg CBD/100 mg of chocolate). Kasa hopes to sell such CBD-infused products in the Latin American market immediately upon receiving regulatory approval, which is expected later this year.
Kasa has been researching and developing Cannabidiol-infused juices and chocolate.
Launched by filmmaker Santiago Mora in 2013, Kasa has received several innovation & social impact awards and grants from the Colombian government for its work with local farmers and indigenous Amazonian communities such as the Tarapacá in the Putumayo region to cultivate fruits for the Mamba beverages, providing sustainable economic opportunities to these communities and offering an alternative to Amazon deforestation and illegal mining in these areas.
“We are excited to acquire an entrepreneurial, innovative company like Kasa Wholefoods. They have done an excellent job of developing a line of world-class juices and chocolates. There is immense demand for CBD-infused products in Latin America and worldwide, said Damian Lopez, Flora’s CEO. “We will combine our organic CBD-Oil with Kasa’s organic Amazonian based fruit juices and chocolates to satisfy this demand. We expect to obtain regulatory approval in Colombia to infuse food & beverages with CBD in 2020 and be the market leader in this category.”
In order to consummate the transaction, Flora must pay Kasa shareholders $294,000 in cash, and pay Kasa’s outstanding debt balance of USD$91,000. Existing Kasa shareholders will retain a 10% equity interest in Kasa which may not be diluted until Flora invests $5 million USD in Kasa. Once this financing milestone is met, all shareholders of Kasa will be diluted if they do not participate in any further Kasa financing. The transaction is subject to the parties finalizing negotiations and entering into a definitive agreement and obtaining of the necessary regulatory approvals.