Grove Inc. Planning Entry Into Nutraceuticals with Vitamedica Agreement
Henderson, NV, June 30, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Grove Inc. (the “Company” or “Grove”) (NASDAQ: GRVI), the Nevada based company redefining the way hemp is bought, produced, and sold, is pleased to announce a strong potential entrance into the nutraceutical space with a non-binding letter of intent to acquire Vitamedica, a leading online seller of supplements for Surgery + Recovery, Skin + Beauty, and Health + Wellness. While the parties plan to negotiate in good faith a definitive binding agreement over the next 30 days, there is no assurance that such an agreement will materialize, or that any acquisition transaction will ultimately close. In addition, the parties will need to complete extensive due diligence to their satisfaction. It is anticipated that if the acquisition does ultimately close, it will be immediately accretive to Grove, being both top line and net income positive for the company.
The potential transaction could combine Grove’s innovation in production and automated low-cost manufacturing with the extensive product line of Vitamedica, which has been recommended by thousands of doctors to serve over 1 million patients. With this letter of intent, the Company has taken direct aim at the vitamin + nutraceutical market in order to address health + wellness needs of all consumers. Vitamedica stood out, not only because of its reputation and testimonials from consumers, but because of the 25 years of clinical use and the products being formulated by physicians.
David H. Rahm, MD, the founder of Vitamedica and practicing anesthesiologist took the approach of focusing on disease prevention rather than those trained to focus on disease treatment. “I founded VitaMedica to ensure that my patients were able to obtain high-quality nutritional supplements. After providing our products only through plastic surgeons, cosmetic dermatologists, and medical spas for over a decade, we’re pleased to offer our recovery, skin health and weight management products to consumers directly on our website.” Vitamedica actively sells their products to consumers as well as doctors and surgeons who offer products to their patients, creating a full circle distribution channel with everyday people and the medical field.
Strategic Highlights
The potential transaction could create a diversified health and wellness portfolio with the entrance into nutraceuticals for Grove, which has already established itself as a leader in the production and manufacturing of hemp-based products.