TORONTO, ON / ACCESSWIRE / April 24, 2019 / Easton Pharmaceuticals, Inc. (the "Company" or "Easton") (OTC PINK: EAPH) is pleased to announce that it has now officially closed on its acquisition of a food processing company based in Toronto, Canada.
Easton has completed its acquisition of Supreme Sweets Inc. and 2498411 Ontario Inc. (collectively the "Acquiree"), which includes all the tangible and intangible assets of the company such as equipment, intellectual property (patents, trade secrets, formulas, etc.) and client lists of both Supreme Sweets Inc. and 2498411 Ontario Inc. The purchase was completed with a combination of cash and Easton stock. The Aquiree will be paid the stock the earlier of 3 years or based on revenue milestones being achieved.
Easton saw an opportunity to acquire a company with a proven track record, but also major expansion opportunities that can potentially grow its sales to over an estimated $50,000,000 per year in baked goods. The Company expects its edibles division to reach $100 million in short order through the supply to major chains.
The business operates from a 40,000 square foot certified facility in Toronto, Canada, and produces high quality traditional baked goods, including higher margin gluten free and keto products. The business supplies baked goods to major grocery chains in North America, as well as specialty coffee chains, under its own brands or as a contract packer. The acquisition is strategic for Easton to enter the Cannabis Edibles market and to supply premium Cannabis Edibles for various ailments through its existing distribution channels, while it continues to grow the traditional baked goods business with new specialty product launches. The Company is anticipating sales to reach $20,000,000 over the next 12 months with increasing margins once economies of scale begin to take effect. Further, Easton has signed an LOI with a licensed producer of Cannabis based in Toronto, Canada and is working towards completing a definitive agreement which will secure a legal supply of oil and flower for its product launches.
Easton acquired the business from Barbara and Mario Parravano, the founders of Supreme Sweets, who have over 60 years of combined experience in the industry and have been innovators in the marketplace. "We are extremely excited to have completed this transaction and to be working with Easton to bring high quality baked goods to the market," stated Mario Parravano. The completion of this transaction has positioned Easton to become a leader in the development of Cannabis Edibles which are expected to become legal in Canada in the fourth quarter of 2019. Easton will be operating from a large-scale production facility that can meet large commercial orders as well as be used for R&D and to develop new products. Evan Karras, CEO of Easton, stated "We are very pleased to have completed our acquisition of Supreme Sweets and are very excited for the direction of the Company. This acquisition forms part of our strategic growth plan to add shareholder value and will give Easton the platform to enter the Cannabis industry."
More information will be announced in the upcoming days, while Easton plans the re-launch of its websites.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a diversified company and as part of its strategic growth plan, the Company has entered new lucrative market segments globally, including Food & Beverage, Real Estate Development and Gaming. Easton has been a specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries and previously developed and owned an FDA-approved wound-healing medical drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton, together with BMV Medica S.A. own the exclusive distribution rights in Mexico and Latin America for two patented women's diagnostic products and a novel natural treatment for Bacterial Vaginosis, which they have sub-licensed to Bayer and Gedeon Richter. In addition, a generic cancer drugs line is being developed for sale in Mexico. The company's gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of other drugs.
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This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when certain words or phrases such as "hope," "positive," "anticipate," "pleased," "plan," "confident that," "believe," "expect," 'possible" or "intent to" and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company's financial reports and filings.
SOURCE: Easton Pharmaceuticals, Inc.