Whetstone Capital Group plc (“Whetstone” or “the Company”) has agreed to acquire a substantial interest in Rapid Nutrition Plc (“Rapid”), the profitable health and nutrition business listed on SIX (Switzerland’s principal Stock Exchange).
Whetstone has agreed to invest an initial £175,000 to subscribe for 2,500,000 new Rapid ordinary shares. In addition Whetstone has been granted a six month option to subscribe £116,667 for a further 1,666,667 shares and subject to Whetstone exercising the Six Month Warrants in full, a twelve month option to subscribe £416,667 for an additional 4,166,667 shares. Subject to the second tranche being exercised in full, Whetstone has also been granted an eighteen month option to subscribe £625,000 for a further 4,166,667 shares.
Whetstone believes that – in the light of Rapid’s recent joint venture agreement with General Nutrition Corporation (“GNC”), the NYSE listed nutrition giant and Rapid’s impressive growth plans – the Company, via its substantial investor interest, can help an active market in Rapid shares to develop which will further facilitate Rapid’s ambitious growth plans to the substantial benefit of both Rapid and Whetstone shareholders. As part of that objective, Rapid has agreed with the Company that it will not issue any further shares without the prior agreement of Whetstone whilst any of the above mentioned warrants remain capable of being exercised.
Commenting on Whetstone’s first investment, Allan Biggar, Chairman, said “we are delighted to have made our first investment in a well managed, profitable, health and nutrition business poised for rapid growth in an increasingly health-conscious world. We believe our ability to support Rapid’s growth plans, including identifying potential acquisitions, will bring substantial benefit to shareholders of both companies.
About Rapid Nutrition
Incorporated in 2001 Rapid trades on the Swiss stock exchange SIX (RAP-EUR (SWX). Rapid is a profitable natural healthcare company focused on the research and development (“R&D”), manufacturing and distribution of weight-loss and diet management products, sports nutrition products, vitamins and dietary supplements and a range of life science products. Exported internationally, Rapid’s award-winning weight loss supplement range is sold in some of the most respected healthcare, retail and online chains and wholesalers including: Amazon (US), Woolworths (Australia), Select Nutrition (Australia), Taobao (China), and Drakes Supermarkets (Australia).
On April 5th 2018, GNC announced plans to establish and develop a presence in the Australian market. Under a master franchise agreement, GNC will partner with Rapid Nutrition to market, sell and distribute GNC products through retail outlet expansion, e-commerce, and other potential distribution channels throughout Australia. In addition, the partnership provides the opportunity for Rapid to distribute its owned brands through the GNC global network. According to Euromonitor, Australia’s consumer health market was approximately $3.1 billion in 2017.
In its last audited accounts for the year ended 20 June 2017 Rapid achieved sales of £1.9m and profits of £535,000.
For further information contact:
David Papworth – City & Merchant (Corporate Advisor)
Tel: : 020 7101 7676
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