KING HONEY LTD

Auckland, New Zealand: Me Today Limited (NZX: MEE) announced today it has agreed to acquire 100% of King Honey Limited from interests associated with Terry Jarvis for total consideration of $36m. King Honey is one of New Zealand's premium Manuka Honey producers, operating since 2016 with a vision to bring highly skilled beekeepers together to develop a fully integrated Manuka Honey business. It has a network of 18,000 bee hives and 3,600 queen bee rearing hives placed across the North Island of New Zealand and into the Marlborough region. Given the overlap in category there is also benefit in leveraging the distribution networks of both Me Today and King Honey. The total purchase price of $36m consists of the following components: - Cash on completion $21m - The issue of $10m in new shares in MEE to the vendor at 8. 8 cents per share - A subordinated note of $5m repayable in three years from completion with interest paid annually in arrears at 4%. At completion it is expected that King Honey will have in excess of $16m in working capital. The network of hives has capacity to produce in excess of 350 tonnes of honey annually. The cash consideration payable on completion of $21m is to be funded through bank debt of $8. 5m and a new equity capital raise. The company plans to raise $15. 75m in new capital from third party investors at 8. 8 cents per share and has mandated CM Partners to arrange the capital raise. 5m and EBITDA of $3. 87m in the financial year to 31 March 2021, and it is expecting growth in revenue and EBITDA in the year to 31 March 2022, with revenue forecast to be $21. 26m. After completion it is intended that Terry will transition away from the day to day running of the business and the existing management team will report to Me Today director Stephen Sinclair, who will take the role as general manager of King Honey. With Terry Jarvis's interests retaining a significant shareholding, Terry remains committed to the success of the business. " The acquisition and capital raising are subject to shareholder approval which the company intends to seek at a shareholder meeting in late June. The notice of meeting and other information is expected to be available mid-June. - ENDS - For further information, please contact: Grant Baker Chairman, Me Today Limited 021 729 800 grant@gbaker. co. nz End CA:00373142 For:MEE Type:TRANSACT Time:2021-05-31 14:54:11. Producer of honey products intended to serve the domestic and international markets. The company operates apiary facilities used for staff operations, storage of equipment, hive maintenance components, queen rearing operations, processing, bottling and storage as well as an agri-testing laboratory to ensure only quality, thereby providing customers with honey that is free from pollutants such as pesticides