Micro Cap Set To Enter Coffee Business With Acquisition Agreement

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Wednesday, January 8, 2025

Coffee is big business, here are the stats. According to Drive Research, roughly 3 out of 4 (73%) of Americans drink coffee every day. Similar numbers were found for Canadian coffee usage. The survey also found that 93% of people drink coffee at least once a week. Based on such figures, its no wonder why the likes of Starbucks (Nasdaq:SBUX) and Tim Hortons (TSX:QSR) (NYSE:QSR) have become such lucrative businesses.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF), a consolidator of emerging food brands, announced that they want to step into the ring for a piece of this massive business. The company announced this morning that they signed as of January 6th, a definitive agreement to acquire 100% of Smile Tiger Coffee Roasters Inc, Happy Belly's first acquisition in the coffee sector.

"Today is a big day for Happy Belly Food Group as we announce the 100% acquisition of our newest brand Smile Tiger to our growing list of emerging brands," said Sean Black Chief Executive Officer of Happy Belly. Entering the coffee & tea beverage category is something we have been exploring for some time, so finding our entry point with Smile Tiger is a great step forward.”

Happy Belly will issue such number of common shares of Happy Belly equal in value to $125,000 (based on a 10-day VWAP) at time of closing together with $125,000 in cash for 100% ownership of Smile Tiger Coffee Roasters, representing an estimated purchase price of 3.3x EBITDA based on 2024 sales of north of $1,000,000. The Company anticipates the closing of this agreement to take place within the next 30 days.

Shares of HBFG are trading up $0.01 at $1.32 in early-afternoon trading.

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