Zinzino announces merger of It Works! into the Zinzino family of businesses for increased distribution power in North America and Europe
Zinzino (publ) (ZZ-B.ST) has today entered into an agreement, and simultaneously closed, to combine with the US-based direct sales company It Works! In an all-share transaction. Through the merger, Zinzino acquired the operational assets of It Works!’ US business, including inventory, distributor agreements, customer agreements, and IP rights, as well as 100% of the shares in It Works! Marketing International UC, an Irish unlimited company, and its wholly owned subsidiaries.
The fixed purchase price amounts to USD 30 million (the “Purchase Price”) which has been paid by Zinzino through a directed set-off issue of 1,843,840 B-shares in Zinzino (the “Directed Issue”). The Directed Issue has been resolved upon by the board of directors of Zinzino, based on the authorization of the Annual General Meeting. The subscription price in the Directed Issue amounts to SEK 145.62 per B-share, which corresponds to the volume weighted average price of Zinzino’s B-share two business days prior to the signing and closing of the transaction. In addition, an additional purchase price estimated to USD 4 million could be paid to It Works! during a five-year span