MONTREAL, QUEBEC--(Marketwired - May 20, 2014) - Earth Alive Clean Technologies (CSE:EAC) ("Earth Alive") is pleased to announce today that it has signed a letter of intent to acquire Montreal-based and privately owned LFP Solutions Inc. ("LFP Solutions")
LFP Solutions is a leading Canadian distributor of organic growth-assisted products for the agriculture industry. LFP Solutions services agriculture clients, both at the retail and industrial levels under white labels, as well as various brands and trademarks such as Gro4 Organics, SmartPots, CowPots, and BigBlue sea based fertiliser.
This acquisition will provide Earth Alive with a strategic market launch platform for its patented microbial fertilizer and the combined entity of Earth Alive and LFP Solutions will offer one of the largest selections of organic inputs in Canada. The new product line up will continue to be marketed in Canada, with a new emphasis and focus on sales to the worldwide agriculture industry.
As explained by the David Gilmour, Earth Alive's CEO ''This acquisition will allow Earth Alive to realise three strategic components for its agriculture business plan. These include an opportunity to gain immediate access to an existing network of clients in the organic agriculture industry. Secondly, it will broaden Earth Alive's product offering to this client base, and thirdly, the merger will combine the expertise of seasoned LFP executives with Earth Alive's management team for the organic agriculture market." Michael Warren, LFP Solutions' Founder and President, will now become Earth Alive's Executive Vice President of its Agriculture business. ''I have full confidence that Michael's expertise and knowledge of the business will allow him to bring our Agriculture division to great success on international markets," Gilmour added.
Earth Alive will purchase all issued and outstanding shares of LFP Solutions in consideration of $250,000 CAD and the issuance of common shares of Earth Alive having an aggregate value of $750,000, the whole in accordance with a definitive share purchase agreement to be entered into between Earth Alive and the seller. The purchase price is payable in three tranches over a period of two years, subject to the achievement of sales targets of agricultural products.
All shares issued pursuant to the share purchase agreement shall be subject to a regulatory four (4) month hold period after each date of issuance.
The proposed transaction is subject to CSE approval and standard closing conditions, including the approval of the definitive share purchase agreement by the directors of each of Earth Alive and LFP Solutions as well as the completion of due diligence investigations to the satisfaction of both parties.
About LFP Solutions
LFP Solutions offers a variety of organic inputs for small and large growers, both at the retail and industrial levels. All of LFP Solutions' proprietary products are specialty products directed to the organic gardening and farming sectors. A strong believer in the simple conviction that a healthy and natural soil is essential to healthy and sustainable agriculture, Michael Warren, the President and Founder of LFP Solutions states that ''joining Earth Alive will allow us to further establish our leadership role in the supply of innovative and environmentally sustainable farming products".
About Earth Alive Clean Technologies
Earth Alive aims to be a catalyst agent of change, and a key player, in world markets of environmentally sustainable industrial solutions. Earth Alive works with the latest innovations in microbial technology to formulate and patent innovative products that can tackle the most difficult industrial challenges, once only reserved to environmentally harmful chemicals and additives. The company is focused on environmental sustainability in 1) dust control for the mining industry, and 2) the agriculture industry.
Earth Alive exports its products to various world regions to clients such Barrick Gold, Areva S.A, Dundee Precious Metals, Southern Peru Copper Corporation, Sol Melia and Iberostar Hotels, Caterpillar Corporation, the Montreal Biôdome, and others.
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.