Mota Ventures Corp (CSE:MOTA) (OTCPINK:PEMTF) has struck a binding deal to buy eCommerce platform Unified Funding for US$45 million, which will allow Mota to develop new products and expand into new healthcare markets.
Unified Funding generates revenue from licensing, marketing and product fees supporting brands in the natural health sector, including skincare, nutraceutical, essential oils and CBD.
Its database has already facilitated over C$364 million in customer transactions since its inception in 2015, with C$93.8 million in 2019 alone.
"The very nature of CBD, natural health products and psychedelics unequivocally points the future of our nascent industry into digital targeting, marketing and engagement of customers who will turn to the web to learn about and acquire the right products for them," Ryan Hoggan, CEO of Mota Ventures said in a statement on Monday.
"Mota has already demonstrated superior eCommerce capabilities in 2020 but this acquisition of Unified will make us a formidable presence in the space."
The firm said its integration with the Unified platform would allow it to "develop new products and enter new natural healthcare markets, aided significantly by Unified's ability to closely track current trends through a global network of media partners".
The binding letter of intent sees Mota Ventures pay for Unified with shares worth US$45 million. These 'consideration' shares will be issued at a deemed price equivalent to the greater of the volume-weighted average closing price in the ten trading days prior to entering the definitive agreement in respect of the acquisition, and C$0.40 a share.
Unified will also be entitled to receive a one-time bonus payment in shares, of US$15 million if the company achieves gross revenue in excess of US$15 million from the Unified business in the 12 months following closing of the acquisition
The Unified offering goes beyond just product sales and the group provides a suite of managed services, for the acquisition of new customers, product development, supply chain management, customer service and profitability analysis, in which it includes over 100 key performance indicators.
Shares in Toronto ticked up 1.27% to C$0.40 each.
----Updates for share price---
Contact the author at email@example.com