ALGREEN announces that it has entered into exclusive negotiations with LUMILIITE regarding the sale of its stake in its subsidiary SA NAKA

LYON, France–(BUSINESS WIRE)–Regulatory News:

The ALGREEN Group (Paris:ALGRE), which specializes in the multi-sector agri-food industry and whose strategy is to integrate companies, industries, farms, and brands within a single group while prioritizing traditional and innovative small and medium-sized enterprises (SMEs), has entered into negotiations with LUMILIITE regarding the sale of its 51% stake in its subsidiary SA NAKA.

NAKA:

NAKA markets a line of CBD-infused sparkling beverages in the French and European markets. NAKA has a strong brand identity, a presence in many major retail chains, products that meet current consumer trends, a team with extensive experience in the F&B industry, and immense growth potential.

As a reminder, NAKA was forced to suspend sales of its CBD-based products in December 2023 pending the issuance of the Novel Food Regulation in Europe.

LUMILIITE:

The group consists of two operating companies (LUMILIITE and VIF SYSTEMS), which are themselves divided into several business unit : LE DOME, AGRICOOL, PRET A POUSSER, LA TIGE – each brand is associated with a specific business activity and/or market segment.

Since its founding, LUMILIITE has been building out its distribution portfolio of hydroponic equipment and plants through acquisitions: LUMILIITE in 2021 (LED business), LA TIGE (plant production for the Café/Hotel/Restaurant «CHR» sector), AGRICOOL (plant production for supermarkets and large retail chains) and PRET A POUSSER (hydroponic products for consumers) in 2022. The goal is to control the value chain by combining different business activities to create synergies between various products and distribution channels, thereby offering a consolidated product portfolio.

Benefits of the Acquisition

• From NAKA’s perspective, the primary objective of the acquisition would be to ensure the sustainability and growth of its operations, while maintaining a strong connection to what has already been achieved. In fact, due to the lack of European accreditation for CBD in food products, NAKA received a prefectural order on December 21, 2023, suspending its operations.
• From LUMILIITE’s perspective, the acquisition of NAKA would enable it to diversify its business, which should drive growth by spreading risk, expertise, and strategic business areas, thereby allowing the company to become more competitive and increase its profitability.
  
  More specifically, the acquisition of the NAKA brand would enable LUMILIITE to:
  • to capitalize on the customer recognition we have built since 2020; ;
  • to take advantage of existing distribution channels, thereby facilitating the marketing of new products; ;
  • to gain market insight; ;
  • and, potentially, to achieve economies of scale by utilizing existing production and distribution infrastructure.

If applicable, details will be provided regarding the next steps in the process.

Our Identity:

The ALGREEN Group, a French company specializing in the food industry and distribution, focuses on a multi-faceted agri-food business model. Its strategy is to integrate companies, industries, and brands into a single group, while prioritizing traditional and innovative small and medium-sized enterprises.

Our goal is to become a major player in the food industry for consumers while respecting the environment, health, and «locally made» products.

Find all the information about the ALGREEN Group at: https://algreen.fr/investisseurs/

ALGREEN (Euronext Growth Paris, Ticker: ALGRE, ISIN: FR001400IV58).

Contact

[email protected]