OMID Acquires Champ Life Brand

OMID Holdings, Inc. (OTC Pink: OMID) has acquired the health and wellness brand Champ Life, with no changes to its share structure.

Rhea-AI Summary

OMID Holdings, Inc. (OTC Pink: OMID) has acquired the health and wellness brand Champ Life, with no changes to its share structure. The acquisition includes a 5% royalty on Champ Life's net revenues, which may be eliminated under certain conditions. Chairman & CEO Adam Frank highlighted plans to expand into athletic markets and incorporate nootropic ingredients, diversifying their product range. OMID aims to enhance shareholder value by canceling personal shares to offset those issued in the acquisition.

Positive

• Acquisition of Champ Life expands OMID's health and wellness product portfolio.
• Plans to introduce nootropic ingredients and enter athletic markets could drive growth.
• No change to share structure maintains shareholder value.

Negative

• 5% royalty on net revenues may impact profitability until eliminated under certain conditions.

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Alpha, N.J., April 20, 2021 /PRNewswire/ -- Today, OMID Holdings, Inc. (OTC Pink: OMID) is pleased to announce its acquisition of a new health and wellness brand: Champ Life. The brand has been wholly-acquired without any net change to the issued and outstanding share structure of OMID. As part of the transaction, the Seller is expected to support various activities related to the launch and future growth of Champ Life, receiving 5% of net revenues from sales. Under certain circumstances, this royalty may be eliminated at the option of OMID management as part of a sale of the brand or following any calendar year wherein Champ Life achieves over $1,000,000 in net revenue.

"We have ambitious plans for Champ Life. In addition to our continued interest in cannabis, we intend to expand our footprint into the athletic and biohacking markets. By introducing nootropic ingredients such as adaptogens from herbs and mushrooms, we will diversify our product portfolio and its beneficial effects. As another example of our previously-stated commitment to shareholders, OMID management has elected to cancel personal shares to offset those issued as part of this acquisition," stated Adam Frank, OMID's Chairman & CEO.

About OMID Holdings, Inc.
OMID Holdings, Inc. is a publicly-traded (OTC Pink: OMID) health and wellness company which owns and operates a manufacturing facility in Alpha, New Jersey. The headquarters is FDA-registered and Food Grade Certified for production within its clean room environment. The company is currently focused on the development, manufacture, and sale of hemp-based products for private label and in-house brands.

For more information about the company, please visit https://omidholdingsinc.com/.

Safe Harbor Act:  Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

info@omidholdingsinc.com 
+1-908-386-2880

 

View original content:http://www.prnewswire.com/news-releases/omid-acquires-champ-life-brand-301272301.html

SOURCE OMID Holdings, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the purpose of OMID's acquisition of Champ Life?

The acquisition aims to expand OMID's product portfolio into health and wellness, specifically athletic markets.

When was Champ Life acquired by OMID Holdings?

The acquisition was announced on April 20, 2021.

What are the financial implications of the acquisition for OMID?

OMID has acquired Champ Life with a 5% royalty on net revenues, affecting early profitability.

How will the acquisition impact OMID's future growth?

The acquisition is expected to facilitate entry into new markets and introduce innovative products, potentially enhancing future revenue.

What changes were made to OMID's share structure following the acquisition?

There were no changes to OMID's share structure; management opted to cancel personal shares to offset those issued in the acquisition.