Lifeist Wellness to Acquire Fast-Growing ‘Zest’ Brand

Lifeist to acquire ‘Zest’ brand to drive growth through expanded marketing and sales as a complimentary product line to its in-house concentrate brand, Roilty

TORONTO, June 01, 2023 (GLOBE NEWSWIRE) -- Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: LFSWF), a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, is pleased to announce it has entered into a definitive share purchase agreement (the “Share Purchase Agreement”), pursuant to which the Company will acquire 100% of 1000501971 Ontario Inc. (“Zest”) for $3,411,707.90 (the “Acquisition”).

The Acquisition is an all-stock transaction, marking another significant milestone for Lifeist’s expansion strategy.

About the ‘Zest’ Brand

The ‘Zest’ brand launched in September 2022 and has experienced remarkable growth within a short period of time, establishing a presence in Alberta, Ontario, Saskatchewan, Manitoba, and the Territories. With nine SKUs currently available and a store penetration rate of 22% in Alberta, Lifeist’s subsidiary, CannMart is focused on rapidly expanding and growing Zest’s market share in the markets CannMart currently serves. The brand’s success is further bolstered by developing innovative products and its ability to tap into fast-growing sub-categories within the Canadian cannabis market.

“The acquisition of Zest is another crucial step in our journey to establish Lifeist as one of Canada’s leading health-tech companies, with a goal to revolutionize human wellness,” said Meni Morim, CEO of Lifeist. “With Zest we acquire an established brand with sales in multiple provinces and territories, along with the added benefit of their unique Liquid Diamond vape formulations. The sale of vapes will generate additional revenue streams for Lifeist through prospective royalty and licencing agreements. We look forward to the seamless integration of Zest and its product portfolio into the Lifeist group of companies.”

“We are very excited about this strategic acquisition, as Zest has demonstrated tremendous growth through its innovative and complementary SKU assortment,” said Daniel Stern, CEO of CannMart. “The acquisition allows us to stay true to our core categories and further solidifies our position in the market. With the addition of Zest’s products, we anticipate accelerated growth in both top-line revenue and, more importantly, gross profit for our Cannabis division. What’s even more exciting is that this growth can be achieved without the need for additional capital expenditure or operating expenses. Leveraging our existing marketing and sales teams, we are confident we can continue to drive growth and achieve results similar to those we’ve accomplished with our successful Roilty brand.”