Omega Brands signs definitive agreement to acquire Omega infusion assets From Mycell Technologies.
M2 EQUITYBITES-October 10, 2014-Omega Brands signs definitive agreement to acquire Omega infusion assets From Mycell Technologies
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Omega Brands Corporation (OTCBB:OMGB) announced on Thursday the signing of a definitive agreement with Mycell Technologies LLC to purchase certain specified assets related to the branded Omega-3 infused beverages and nutritional shots sold under the trade name Omega Infusion.
Under this asset purchase agreement, the company will purchase for USD1.00 the proprietary formulas, trade-names, trade-secrets, trademarks, marketing materials and internet domains related to the Omega Infusion Business from Mycell Technologies LLC. Omega Brands will pay to Mycell a 15% royalty on net proceeds received by it from any future sale, license or other disposition of the Omega Infusion assets to a third party.
Also, the company has entered into a supply agreement with Oceans Omega LLC, a wholly-owned subsidiary of Mycell Technologies LLC, for its proprietary omega emulsion.
This supply agreement, which has a term of 20 years, provides in part for the sale of the proprietary omega emulsion to Omega Brands at a competitive price. Omega Brands will pay a royalty to Oceans Omega per 12 pack of Omega Infusion Enhanced Water or Omega Infusion Shots sold by Omega and which incorporate Ocean Omega's omega-3 emulsion. In addition, to protect Omega Brands' competitive position during the early stages of the agreement, Oceans will pay to Omega Brands a royalty on omega-3 emulsion sales in North America made to select customers.
Omega produces and distributes premium, Ready-to-Drink (RTD) functional beverages.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 10, 2014|
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