Avanco Capital signs LoI to acquire Hill Street Beverage
Avanco Capital (Avanco) has signed a letter of intent (LoI) to acquire Hill Street Marketing, which is currently doing business as Hill Street Beverage in Toronto, Canada.
The LoI will be replaced by a definitive agreement to be signed by the parties at a later date.
As per the terms of the LOI, Avanco intends to acquire all of the issued and outstanding securities of Hill Street from its existing shareholders. As a consideration, Avanco will issue 40 million common shares to the existing shareholders of Hill Street at a price of $0.175 per share for a value of $7m.
Completion of the transaction is expected to take place after satisfying regulatory, corporate, and third party approvals.
Established in 2008, Hill Street has been engaged in marketing and distribution of alcohol-free wine and beer products in Canada. Its products are currently available in approximately 4,000 major chain stores in Canada and online through its direct-to-consumer subscription service at hillstreetbevco.com.
Hill Street’s product portfolio includes MADD Virgin Rouge, MADD Virgin Blanc, and MADD Virgin Brut wines, as well as MADD Virgin Craft Brewed Lager.
Upon completion of the deal, Hill Street is expected to become a wholly owned subsidiary of the Avanco and the capital pool company plans to change its name to Hill Street Beverage Company.