Forbidden Foods has completed the acquisition of 100 per cent of the issued capital of Oat Milk Goodness.
The Company is also close to finalising all required integrations into its existing framework and is now focused on capitalising on recent sales momentum.
Completion follows the Company’s Extraordinary General Meeting (EGM) on 20 September 2024, which was held to approve, among other things, the issue of Consideration Shares as well as the issue of securities under a Placement in connection with the Company’s acquisition of 100% per cent of the issued capital in leading plant-based non- dairy business Oat Milk Goodness (OMG).
Under the terms of the Share Purchase Agreement with OMG, Forbidden Foods agreed to acquire all the issued capital in OMG for a consideration of $3.42m.
The settlement via the issue of 285m new fully paid ordinary shares in Forbidden Foods at a deemed issue price of $0.012 (Consideration Shares) (refer ASX Announcement 14 August 2024).
The Company advises that all 12 resolutions put to members at the meeting were approved by shareholders, thus ratifying the transaction in accordance with ASX Listing Rules (refer ASX Announcement 20 September 2024).
OMG was established to develop a home-grown oat milk product that takes advantage of Australia’s abundant supply of natural oats.
The product is free of industrial seed oils such as canola, rapeseed or sunflower oil which can cause inflammation.
Since launching, OMG’s core oat milk product has established strong traction among merchant customers in the café and barista industry.
OMG has since broadened its product range to include flavoured milks and ‘prOATein’ options and has expanded distribution through ranging in Woolworths and Ampol Foodery outlets.
Through its distribution channels, OMG is also found in leading independent and health food stores.
The group is also actively pursuing international expansion opportunities with an initial focus on India, to leverage Steve Smith’s profile in the Indian market and take advantage of increased demand for health products among Indian consumers.