Prime Drink Group Corp. (CNSX:PRME) entered into a binding letter of intent to acquire Triani Canada Inc. from 9296-0186 Quebec Inc. for CAD 38 million on January 21, 2024. The consideration consists of CAD 2 million in cash and CAD 17.5 million in common equity. As part of the consideration, CAD 38 million was paid towards common equity. Prime Drink Group intends to pay CAD 18.5 million in common equity to 9296-0186 Quebec if Triani reaches certain EBITDA targets in the financial years ended 2024, 2025 and 2026. The transaction is financed through concurrent financing by raising maximum of CAD 7.5 million.
The Company intends to consolidate its outstanding Prime Drink Group Shares on a 5:1 basis resulting in 1 Prime Drink Group Share outstanding following the Consolidation for every 5 Prime Drink Group Shares outstanding. The transaction is subject to negotiation and execution of the Definitive Agreement, including the grant of the ROFR and Options. The transaction is subject to obtaining all necessary consents, orders and regulatory and shareholder approvals. The transaction is subject to CSE approval. The transaction is satisfactory due diligence by each party of the other party. Upon completion of the Proposed Transaction, Prime Drink Group intends to change its name and CSE will assign a new trading symbol.