Shares of TRxADE HEALTH, Inc. (NASDAQ: MEDS) skyrocket by 122.87% in the pre-market trading Monday as the pharmaceutical exchange platform provider is set to acquire Superlatus, a US-based food products company. Here’s what you need to know:
- Superlatus will be acquired by TRxADE HEALTH, as per a binding letter of intent.
- Shareholders of Superlatus will receive 30,821,918 shares of TRxADE HEALTH valued at $7.30 per share.
- The merger is subject to certain conditions, including the completion of due diligence, submission of audited financials, and obtaining regulatory approvals.
- Superlatus is also acquiring Sapientia, a food tech business led by renowned food scientist Dr. Eugenio Bortone. Dr. Bortone is credited with inventing Frito-Lay’s Twisted Cheetos. Sapientia has developed four patented technologies for snack foods, focusing on texture, flavor, and offering healthier alternatives.
- A valuation report for Superlatus is required, reflecting a minimum value of $225 million after the acquisition of Sapientia.
- TRxADE HEALTH has big plans. They intend to shift their focus towards becoming a leading company in processing and forming technologies for plant-based foods. Their vision includes creating exceptional plant-based meats, dairy alternatives, and nutritious snacks.
- Both companies’ boards of directors have unanimously approved the letter of intent, and the merger is expected to close in the late third quarter or early fourth quarter of 2023.
This merger aims to combine Superlatus’ food products and distribution capabilities with TRxADE HEALTH’s expertise in pharmaceutical exchange platforms. Together, they plan to create innovative plant-based food products while prioritizing taste, texture, and nutrition. The merger is anticipated to be finalized later this year.