Caduceus Corp completes binding LOI to enter the 90 BILLION pet food market
CHEYENNE, WY / ACCESSWIRE / April 12, 2021 / CADUCEUS CORP, INC. (CSOC) ('Caduceus' or the 'Company'), a publicly traded holding company focused on strategic consumer goods acquisitions is pleased to announce that the Company has signed a binding letter of intent (LOI) to acquire McLovin's Pet Food, Inc., a California registered company active in the pet food industry. Completion of the transaction, subject to customary closing conditions, is anticipated within this month.
The terms outlined in the LOI are subject to the parties successfully entering into a definitive agreement (the 'Definitive Agreement') in respect of the Transaction on or before April 30, 2021. The material terms of the Transaction are as follows:
In consideration for the Transaction, the Company will issue an aggregate of 1.5B restricted common shares of Caduceus (the 'Consideration Shares') to McLovin's shareholders at a deemed price of $0.075 per Consideration Share in exchange of all of the issued and outstanding securities in the capital of McLovin's Pet Food, Inc. and a lump sum of USD 500,000. More details on the transaction, including operations going forward will be disclosed upon closing.
Alex Chen, Chief Executive Officer and Director of Caduceus, stated: 'We are excited about the opportunity to bring McLovin's under the Caduceus Corp umbrella. Consumer goods is an important and growing sector, especially given the current times.'
The increase of pet humanization, wherein pets are treated with increased care and hygiene, is proving to be a major driver for the market and is leading to major changes in product packing and resourcing of ethically viable products. The pet food market has experienced positive effects during the pandemic outbreak. The Covid-19 lockdown restrictions resulted in heavy adoption and purchases among the consumers leading to an increase in demand. Over the years, pet adoption has increased due to varied reasons in North America. The increase in pet ownership among young adults is influenced by social media and millennial trends.
In 2019, pet adoption is a major category, with 45.0% of dogs and 60.0% of shelter cats being placed in new homes. Increase in awareness on animal welfare, has resulted in increase in adoption rate. Hence, due to the increased adoption of pets, pet food manufacturers are offering premium products targeted towards pet owners.
The global pet food market size was valued at USD 90.13 billion in 2019 and is projected to reach USD 127.21 billion by 2027, exhibiting a CAGR of 4.6% during the forecast period (2020-2027).
'Our proven access to capital creates opportunities to pursue attractive targets in very profitable consumer goods space. We intend to complete this transaction shortly, following which we will announce further details on the operations and what we plan for 2021.' said Alex Chen, Chief Executive Officer and Director of Caduceus.
'We pride ourselves on the great level of quality behind our manufacturing process and more importantly the fact that McLovin's sourcing is held to the highest standards of ethics and safety. The McLovin's products are made in USA & Canada and we believe this is a competitive advantage for us' said David Ji, Chief Executive Officer of McLovin's Pet Food, Inc.
To learn more about McLovin's, please visit the website: https://mclovinspetfood.com/
About CADUCEUS CORP, Inc.
CADUCEUS CORP, Inc. is a Wyoming-based holding company focusing on the acquisition & merger of commercialized businesses. We are dedicated to supplying quality, healthy and innovative products and solutions. The Company is traded on the Over-the-Counter Bulletin Board of NASDAQ under the trading symbol 'CSOC'.
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About McLovin's Pet Food, Inc
McLovin's, Inc. is a California registered company focusing on the manufacturing and distribution of quality pet foods. We believe in real food. What you'll find in McLovin's is similar to what you'll find in your own grocery cart. In the case of our premium treats, it starts (and ends) with real beef, chicken and salmon. Our products are developed using responsible sourcing and quality is a key part of every single part of our manufacturing process.
Corporate Website: https://mclovinspetfood.com/
Safe Harbour Statement - In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief, or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that could cause these differences include, but are not limited to, failure to complete anticipated sales under negotiations, lack of revenue growth, client discontinuances, failure to realize improvements in performance, efficiency and profitability, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this press release can also be found on the Company's website. The Company disclaims any responsibility to update any forward-looking statements.
SOURCE: Caduceus Corp, Inc.
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