NR Instant Produce Public Company Limited (NRF) announced in reference to the Board of Directors’ meeting’s resolution on January 7, 2021 to increase the transaction size into the joint venture between NRF Consumer Company Limited (NRF Consumer), a subsidiary of NRF, and Boosted Ecommerce, Inc. (Boosted) (Incorporated in the United States of America).
NRF informed that it has completed the confirmatory due diligence with a satisfactory result as determined by the Board of Director and can confirm that the total consideration to the seller will be USD 16.0 million.
As of 28 January 2021, NRF has paid USD 7.5 million or approximately THB 225.75 million for the first tranche of Prime Labs’ acquisition with the remaining amount of USD 8.5 million to be paid within 2022. Prime Labs is a brand owned by Amazon’s third-party seller with leading products in the functional sector including nutrition supplementary products.
Furthermore, NRF and Boosted have agreed to amend the joint venture agreement regarding the expiration date of the performance target whereas Boosted will receive an additional 12% of Boosted NRF Corporation’s total shares (in common stock) if the joint venture generates over USD 30 million EBITDA based on a trailing twelve-month basis (TTM).
The amendment extends the term by two years from the end of 2023 to the end of 2025. If the joint venture is not able to achieve the performance target, NRF Consumer will be entitled to receive back the additional 12% of Boosted NRF Corporation’s total shares (in common stock). NRF anticipates that the amendment will allow the company to efficiently manage the working capital and benefit the shareholders in the long run.