Lendway Announces Acquisition of Bloomia

Transaction Broadens Lendway's Mission to Be a Specialty Ag and Finance Company

MINNEAPOLIS, MN / ACCESSWIRE / February 26, 2024 / Lendway, Inc. (Nasdaq:LDWY) (www.lendway.com), today announced the closing of its acquisition of a majority ownership interest in Bloomia B.V. (www.bloomia.com), one of the largest producers of fresh cut tulips in the United States. With this transaction, Lendway broadens its mandate to be a specialty ag and finance company and accelerates its pathway to long-term growth.

Originally founded in the Netherlands with an innovative spirit, Bloomia has grown to become a leader in the fresh cut tulip industry, nurturing over 75 million stems annually. Bloomia operates from three strategically positioned locations in the United States, Netherlands, and South Africa and a strategic partnership in Chile and has established thriving relationships with numerous prominent U.S. retailers.

Lendway's subsidiary, Tulp 24.1, LLC acquired 100% of the ownership interests of Bloomia for approximately $47.5 million cash. Lendway now holds an 81.4% interest in Tulp 24.1, LLC and is its sole managing member. Werner Jansen, the continuing CEO of Bloomia, is the subsidiary's only other member.

To finance the purchase, Tulp 24.1, LLC borrowed approximately $22.8 million under a new credit facility provided by Associated Bank, N.A., $15.5 million pursuant to bridge loans primarily funded by the sellers, and paid the remainder with cash on hand.

"We are thrilled to acquire this incredible business, which is an excellent fit within our specialty agriculture and finance strategy," said Mark Jundt, Chair of Lendway's Board of Directors. "We believe this transaction will bring significant value to our stockholders, with strong growth potential on the horizon. The addition of the Bloomia management team brings highly talented and motivated personnel who are capable of further growing its industry-leading operations. With this acquisition complete, Lendway will continue to explore additional growth and acquisition strategies in our existing and adjacent industries in keeping with our relentless focus on growing stockholder value."