FitLife Brands, a provider of nutritional supplements, entered into definitive documentation to acquire all of the issued and outstanding common shares of Mimi’s Rock, subject to customary closing conditions.
The total transaction value is approximately C$27.2 million ($20.3 million) and is expected to close in February. FitLife expects to incur $1.2 million to $1.5 million in transaction expenses, and after closing the transaction, it will invest approximately $2 million to enhance Mimi’s Rock’s working capital position.
FitLife plans to fund the consideration, the transaction costs and the working capital investment using a combination of cash on hand and a new and committed term loan not to exceed $12.5 million and to be provided by First Citizens Bank. In addition, in conjunction with the closing of the arrangement, FitLife intends to enter into a new upsized and undrawn $3.5 million revolving line of credit, which has already been approved by First Citizens Bank.
