Canada | Diamond Estates Wines & Spirits has announced further product expansion.
Diamond Estates Wines & Spirits Inc. has officially announced that it will be distributing D’Ont Poke the Bear wines and ciders throughout Canada.
To facilitate the distribution of these products, the Company has agreed to purchase DPTB inventory from Generations Wine Company Limited. It has entered into a licensing agreement with 3346625 Canada Inc., a corporation controlled by Pierre-Paul Lassonde. Lassonde Holding has acquired from GWCL the brand names and trademarks associated with DBTB.
Diamond Estates has agreed to purchase the DPTB inventory and provide other future consideration for a total estimated cost of CAD 2.5 million over a period of 60 months. The estimated consideration assumes the historical sales of DPTB products continues at its current rate.
Pursuant to the Licensing Agreement, the Company has obtained from Lassonde Family Holding the rights to manufacture, market, distribute and sell DPTB products, in exchange for a 10 percent royalty on all products sold. The Licensing Agreement is for an initial five year term, subject to an additional five year renewal option. The Company also has the right to purchase the DPTB brand names and trademarks from Lassonde Family Holding under certain conditions.
The entering into of the Licensing Agreement with Lassonde Holding may be considered a related party transaction within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The Company has relied on exemptions from the formal valuation and minority approval requirements of MI 61-101, as neither the fair market value of the subject matter nor the fair market value of the consideration for the transaction, insofar as it involves related parties, exceeds 25 percent of the Company’s market capitalisation.
D’Ont Poke the Bear was first launched in 2017 by two industry veterans, Allan Jackson and Andrew Von Teichman. The Brand is sold in nearly every province across the country, with Ontario as its key market. The wines are 100 percent VQA and the cider is made from locally sourced apples.
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