News just out is that Leading Brands, Inc. (NASDAQ: LBIX) has entered into a definite arrangement agreement with Liquid Media Group, Inc. in a transaction that would see Leading Brands, Inc. acquire 100% of Liquid pursuant to a plan of arrangement. Other details of the transaction includes LBIX holding 22.637% shares in Liquid and Liquid current shareholders holding 77.363 percent of the post transaction entity.
LBIX is a fully integrated beverage company founded in 1986 with headquarters in Vancouver Island, Canada. The company has developed a North America wide distribution network, as well as an established portfolio of proprietary brands and a wide range of licensed products. The company is also a significant producer of private label products and a co-packer and beverage bottler for major international beverage companies. Liquid Media on the other hand is a vertically integrated global studio producing content for all platforms including film, TV, gaming and VR through its network of shared services.
It is expected that upon close of transaction, the incumbent board (excluding Tom Gaglardi) would resign and be replaced by Messrs. Jackson, Brezer and Cruz and Ms. Katsoolis. LBIX anticipates that the transaction would be finalized in the next 90 days subject to all necessary approvals.
The acquisition serves as an opportunity for LBIX to diversify its business by acquiring a company that produces world class entertainment products, a service that is different from its core product offerings of LBIX (Beverage products).