EDIBLE GARDEN Signs Non-Binding Letter of Intent to Acquire NARAYAN GROUP to Expand into the European and North American Markets

Growth Strategy - The Narayan Group's growth strategy includes entry into the United States and Canadian markets, as well as strategic acquisitions in the food segment [1] - The company expects to achieve combined revenues exceeding $60 million in 2025 through its integration with Edible Garden's North American distribution network [5] Financial Performance - The Narayan Group reported a net profit of$0.942 million and EBITDA of $3.0 million for the year ended December 31, 2023 [3] - Net sales revenue grew from$12.1 million in 2020 to $26.9 million in 2023, with expected annual revenue of approximately$31.5 million for 2024 [6][4] - The company generated over $22 million in revenue during the first nine months of 2024, with Q4 revenue expected to exceed$9.5 million [4] Product Segments - The Narayan Group operates in two core food product segments: Organic Coconut and Superfoods Products [11] - Organic coconut products include virgin and refined coconut oils, coconut flour, coconut sugar, and coconut syrup, available in various packaging and flavors [12] - Superfoods products include spices, grains, seeds, nuts, cereals, fruits, syrups, ready-to-cook meals, and toppings such as quinoa, chia seeds, and goji berries [18] Market Reach - The Narayan Group's products are sold in over 75,000 retail stores globally, primarily within the EU, and are distributed by major retailers like Lidl, Kaufland, and Aldi [10] - The company ranks among the top 1,000 global suppliers to Schwarz Group (Lidl & Kaufland) and Aldi, which are ranked 3 and 4 in global food retail by international revenues [10] Strategic Transaction with Edible Garden - Edible Garden signed a non-binding LOI to acquire 100% of Narayan Group's share capital, with the transaction expected to close subject to due diligence and financing conditions [4][8][9] - The combined entity aims to leverage Narayan's European market leadership and Edible Garden's CEA technology to expand in North America and Europe [7] - The transaction is expected to drive operational efficiencies, cross-selling opportunities, and scalable growth in the organic and sustainable food market [7] Financial Reporting - The Narayan Group uses non-IFRS financial measures, including EBITDA, to complement its IFRS reporting and provide insights into operational performance [3] - Financial statements are prepared in accordance with IFRS, while Edible Garden follows GAAP, with differences between the two standards noted [14][20]