(Palm Beach, FL) - Vegalab, Inc. ("Vegalab” or “the Company"), (OTCQB: VEGL), announced today that it completed its acquisition of The Agronomy Group, LLC effective as of February 1, 2018. The Agronomy Group (“TAG”), located in Tulare County, California, is a producer and distributor of environmentally friendly agrochemicals. TAG had been Vegalab’s top U.S. sales organization, so the acquisition dramatically expands the Company’s internal marketing capability. The purchase price for TAG was paid by the delivery of 600,000 shares of the restricted common stock of Vegalab, and a warrant to purchase 1,600,000 shares of the restricted common stock of Vegalab at an exercise price of $1.20 per share exercisable over a term of five years.
David Selakovic, CEO of Vegalab, Inc., said, “Vegalab’s acquisition of The Agronomy Group puts us in direct relationship with industry leading, national agro-chemical distributors and dealers such as Winfield United, Stanislaus Farm Supply, Buttonwillow Warehouse, and Mid Valley Agricultural Services. We are excited about the potential to increase our sales with the addition of 29 new products from TAG, including 10 of which are listed for use in organic agriculture (9 by the Organic Materials Review Institute, and 1 by the Washington State Department of Agriculture). Our management team determined this to be a highly strategic acquisition opportunity, and we expect TAG’s environmentally friendly products and established distribution channels to substantially increase our revenues and profitability.”
About Vegalab, Inc.
Vegalab, Inc. is the exclusive distributor in North and South America of a line of all-natural, biologically derived pesticides, fertilizers, and specialty agricultural products. Vegalab’s pesticides are highly effective against targeted organisms, non-toxic to beneficial organisms, and safe for the environment. Vegalab products support a healthy soil biome and are cost competitive with synthetic chemicals that do just the opposite.
Safe Harbor for Forward-looking Statements
This news release may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities, and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated, or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.