Ohio-based Better For You Wellness, Inc. (OTC:BFYW) announced on Tuesday the successful closure of its previously announced asset purchase agreement with The Ideation Lab, LLC and its subsidiaries.

This deal marks a significant milestone for the company, positioning it for growth in the $1.5 trillion wellness industry, BFYW said.

The Ideation Lab, founded in 2019, has been at the forefront of innovation in various wellness segments, including functional beverages, skincare, personal care, pet lifestyle and women's mental wellness products.

TIL has distinguished itself through visionary leadership and centralized administrative operations, ensuring optimal efficiency in its endeavors.

The Transaction

The transaction is valued at $3 million and it leverages BFYW series A preferred shares.

The issuance of 300,000 series A preferred shares, priced above market at $0.01 per share, ensures minimal shareholder dilution.

In return, BFYW gains perpetual rights to TIL's impressive portfolio of brands, including the highly coveted Stephen James Curated Coffee Collection (SJCCC).

The APA also encompasses key sales agreements, contracts, customer and vendor agreements, formulas, intellectual property, inventory, equipment and centralized administrative operations, which particularly excel in the consumer packaged goods sector.

In accordance with the APA, BFYW will not assume TIL liabilities of more than $1.3 million or take possession of the legal entities or bank accounts or lease obligations.

Why It Matters

SJCCC, a premium coffee brand has already secured sales channels at Kroger, Amazon, various resorts, retailers and boutiques.

SJCCC's Kroger sales encompass a diverse range of globally sourced whole bean dark, medium, and light roasts, with the company's K-Cups and Nitro Cold Brew undergoing evaluation by multiple national retailers.

Ian James, CEO of BFYW praised the transaction.

"This is a pivotal day for BFYW and its shareholders," James said. "The closure of The Ideation Lab deal secures perpetual rights to divisions and brands, including the exceptional Stephen James Curated Coffee Collection brand."

What's Next

TIL's expansion plans include penetrating major grocery chains, retailers, and resorts, amplifying its market reach.

"We foresee significant synergies in functional beverage, mental wellness, snacks, personal care, and pet lifestyle lines in retail and hospitality," James continued. "This transaction holds tremendous potential to enhance shareholder value and achieve profitability in the near future."

BFYW Price Action

Better For You Wellness' shares traded 11.72% lower at $0.0057 per share at the time of writing on Wednesday morning.