VANCOUVER, BC and MESA, AZ, July 28,
2014 /CNW/ - Avidus Management Group Inc. (TSX-V: AVD;
"Avidus" or the "Company") is pleased to announce
that further to its news release of July 16,
2014, it has completed the acquisition of substantially all
of the assets of Truestar Health Inc. ("Truestar"), a Toronto based network-marketing company (the
"Acquisition").
Under the terms of the Asset Purchase Agreement, Avidus
completed the Acquisition for an aggregate purchase price (not
including value of inventory) of CAD$6
million. CAD$500,000 of
the purchase price was paid upon closing of the Acquisition and the
remaining CAD$5.5 million will be
paid based upon a 5% royalty override on Truestar's revenue.
Avidus will pay for existing Truestar inventory as products are
sold. The 5% royalty override does not begin until after
current Truestar inventory is sold.
As part of the Acquisition, Avidus is acquiring Truestar's
proprietary software system that allows distributors and customers
to create customized nutritional, diet and exercise plans around
Truestar's 30 plus products.
In addition, Avidus announces, that it has completed the first
tranche of its previously announced non-brokered private placement
(the "Private Placement") of units of the Company (each a "Unit")
at a subscription price of CAD$0.10
per Unit. A total of 7,091,700 Units were issued under
the first tranche closing for gross proceeds of CAD$709,170. Each Unit consists of one
common share and one common share purchase warrant (a "Warrant"),
each Warrant entitles the holder thereof to purchase an additional
common share of the Company at an exercise price of $0.20 per common share for a period of 3 years
from the date of issue.
All securities issued under the Private Placement are subject to
a four‐month hold period expiring November
26, 2014, during which time the securities may not be
traded. The proceeds of the Private Placement have been used
to fund the Acquisition and for general working capital.
About Avidus
Avidus Management Group Inc. (TSXV: AVD, OTC: ASNHF), based in
Mesa, Arizona, develops, acquires
and operates growth direct sales and network marketing companies in
the consumer health and wellness market. Avidus brands include
Asantae (www.asantae.com) and Akea (www.akealife.com).
The Avidus leadership team has a combined experience of 100
years in network marketing and direct selling. For more
information, visit www.avidusmanagementgroup.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Forward Looking Statements
Certain information in this news release is forward-looking
within the meaning of certain securities laws, and is subject to
important risks, uncertainties and assumptions. This
forward-looking information includes, among other things,
information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions, including
with respect to the Company's anticipated revenues, profitability
and the completion of the Acquisition and the private placement of
Units. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and
expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the
Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such
forward-looking information may differ materially from actual
results or events. Material factors which could cause actual
results or events to differ materially from such forward-looking
information include, among others, the Company's ability to develop
new products which will receive market acceptance, to receive
market acceptance in new markets outside the United States, to engage and retain
qualified key personnel, employees and affiliates, to obtain
capital and credit and to protect its intellectual property
rights.
The Company cautions that the foregoing list of material factors
is not exhaustive. When relying on the Company's forward-looking
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that
the material factors referred to in the previous paragraph will not
cause such forward-looking information to differ materially from
actual results or events. However, the list of these factors is not
exhaustive and is subject to change and there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY
OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE
TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS
REQUIRED BY APPLICABLE LAWS.
SOURCE Avidus Management Group Inc.