EDMONTON, ALBERTA, Aug 2, 2005 (CCNMatthews via COMTEX) -- PLANET ORGANIC HEALTH CORP. (TSX VENTURE:POH) ("Planet Organic"), which owns and operates large natural food supermarkets under the Planet Organic Market banner, and a chain of natural health outlets across Canada under the Sangster's Health Centres banner, announced today that it has closed its acquisition of Newfound Health.
Newfound Health is a profitable company with 14 franchise locations in Alberta. Three non-performing locations were removed from the deal prior to closing. Azim Velji, the President of Newfound Health, will stay on to provide consulting and management assistance to Planet Organic during the transition. Newfound's management stated, "This is an excellent move for our group of stores. It provides us with a valuable exclusive private label to assist us in reaching the next level." The Newfound Health chain will operate under the Sangster's division, which is headed up by Roy Sangster. "We're glad to have the Newfound Health chain under our umbrella. It will add significant revenue and more bottom line to our existing operations, while providing them with access to our exclusive Sangster's brand of products." Roy Sangster commented.
"The Newfound Health acquisition represents another strategic move for Planet Organic," said Planet Organic CFO Darren Krissie. "With more stores and a stronger presence in Alberta, we will continue to build our revenues, increase our buying power, and offer our customers a wide range of healthy organic and natural living products. We look forward to expanding our team to include the experienced and professional franchisees and staff at Newfound Health."
The final purchase price was $1.0 million, with $500,000 in cash, $400,000 in vendor take back financing over 3 years and the balance via the issuance of 90,909 shares. The transaction is arms length and will not result in change of control of Planet Organic Health Corp.
In just over four years, Planet has grown from one small market store to over 50 locations.
This news release contains forward-looking information. Actual results may vary significantly from estimates.