Mondias Natural Products, Canada’s botanical products developer, has signed a binding letter of intent (LOI) to acquire Érablier, a Quebec start-up beverage company.

Érablier is engaged in the production of organic maple water beverage products using processed water obtained from sugar maple tree sap (acer saccharum).

Under the deal, Mondias will acquire all assets of Érablier.

Mondias CEO Dr Patrick Frankham said: “This strategic acquisition represents an excellent opportunity to enter the vibrant health and wellness beverage space using a natural and organic product obtained from Québec.

“Maple water is a unique natural product that is harvested by sophisticated and large-scale methods from which we obtain our starting material to create natural products for consumers.”

Mondias, in its binding LoI, agreed to pay C$75,000 ($56,445) in cash for the acquisition. Initially, the company has agreed to pay C$50,000 ($37,630) on the closing of the deal and remaining C$25,000 ($18,815) upon the completion of the technology transfer.

Additionally, Mondias agreed to pay a 4% royalty of the annual net sales, subject to a maximum C$1,000,000 ($753,200) aggregate royalty payment.

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Completion of the deal is subject to Mondias due diligence, board and regulatory approval.

Once completed, the deal will be the first functional beverage acquisition for Mondias wholly-owned business unit SetPoint Beverages.

Last month, Mondias announced the creation of business units for human health, agriculture and functional beverages.

SetPoint Beverages business unit was created by Mondias last month as part of the company’s structure.

Mondias notes that all its functional beverage products will be branded as SetPoint Beverages and will enter the functional beverages market.