ZINZINO AB (PUBL): Zinzino expands in Asia
Zinzino has signed a letter of intent with VMA Life in Singapore regarding the acquisition of this company for a quicker expansion within the Asian region.
Zinzino has the intention to sign a final acquisition agreement during the first quarter 2020 after completion of due diligence.
VMA Life is a direct sales company with the headquarters in Singapore that has business operations in Malaysia, Thailand, Taiwan, Hong Kong, China and Singapore. VMA Life sells health and beauty products.
“With Zinzino we will get a strong partner with great products which we believe will perfectly suit customers in our region”, says Kenneth Koh, CEO and owner of VMA Life.
“Kenneth Koh and VMA Life will be a very important step for Zinzino towards the goal to expand in Asia. We had our sales start in Australia earlier this year and will have our sales start in India during 2020. By the acquisition of VMA Life we will get additional knowledge and competence in the Asian region. By introducing our products and our customer-focused sales concept we will create a leverage effect”, says Dag Bergheim Pettersen, CEO Zinzino.
VMA Life is profitable, and the turnover is approx. 3 million USD. By this cooperation, with Zinzino’s products and business model, Zinzino expects that VMA Life will increase sales already in 2020.
According to letter of intent, Zinzino shall, with entry, pay a fixed purchase price of 0.7 million USD paid partly in cash and partly in newly issued Zinzino shares. Then additional purchase prices will base on sales developments during 2020-2022. The total additional purchase price estimates at approximately 1 million USD. The acquisition will be financed with Zinzino’s liquidity, and the additional purchase price will generate through profits from VMA Life.
For more information:
Dag Bergheim Pettersen CEO Zinzino +47 (0) 932 25 700, zinzino.com
Pictures for publication free of charge:
Marcus Tollbom +46 (0) 70 190 03 12
Certified Adviser: Erik Penser Bank Aktiebolag, +46 (0) 8 463 83 00,
Zinzino AB (publ) is obliged to publish this information in compliance with current EU regulations governing market abuse. The information was provided by the above contact person for publication at 14:00 the 22nd of November 2019.
Zinzino AB (publ.) is a global Direct Sales company that markets and sells test-based nutrition, skincare and life-style products. Zinzino owns the Norwegian company BioActive Foods AS and the research and production unit Faun Pharma AS. Zinzino is based in Gothenburg, with additional offices in Helsinki, Riga, Oslo, Florida and Adelaide. Zinzino is a public company and its shares are listed on Nasdaq First North.