Yooma Wellness Announces Financial Results of Yooma Corp. for the 2020 Financial Year


TORONTO, April 30, 2021 (GLOBE NEWSWIRE) — Yooma Wellness Inc. ("Yooma") (CSE:YOOM), a Toronto-based vertically-integrated global wellness platform that develops and markets a portfolio of wellness brands, today announced that it has filed the annual financial statements (the "Financial Statements") for one of its predecessor companies, Yooma Corp., for the financial period from January 1, 2020 to December 31, 2020 (the "Reporting Period"). Yooma was formed by amalgamation on February 10, 2021, when Yooma Corp. completed a reverse takeover of Globalive Technology Inc. ("GTI"). The Financial Statements filed today are the financial statements of Yooma Corp., whose business and management team are the go-forward business and management team of Yooma.

For a summary of Yooma's financial results, see the Selected Annual Financial Highlights set out below, as well as the more detailed information contained in the Financial Statements and related management discussion and analysis which are available on Yooma's SEDAR page at www.sedar.com.

Operational Highlights

Yooma is in the early stages of implementing its strategic plan to become a vertically-integrated global leader in the marketing, distribution and sale of wellness products, including hemp seed oil and hemp-derived cannabinoid (CBD) ingredients. During the Reporting Period, the company's focus has been on establishing the necessary preconditions for future growth through acquisitions and taking steps to list the company's shares on the Canadian Securities Exchange.

Key operational highlights during the Reporting Period included the following:

  • Acquisition of Entertainment Direct Asia Ltd: On April 22, 2020, Yooma acquired Entertainment Direct Asia Ltd. ("EDA") and its subsidiaries by way of a share exchange agreement at an agreed purchase price of US$390,000. EDA operates a digital marketing platform in Asia which Yooma has repositioned to enable the distribution, marketing and sale of CBD topical products in China and other Asian markets.
  • Reverse Takeover Transaction: On July 13, 2020, Yooma entered into a binding letter of intent to complete a reverse takeover of GTI, based on a relative valuation of US$25,000,000 for Yooma and a relative valuation of GTI equal to its cash on closing plus US$500,000. Yooma and GTI worked diligently throughout the Reporting Period to negotiate definitive agreements and satisfy the conditions to completing the reverse takeover transaction. The reverse takeover transaction was completed on February 10, 2021, after the end of the Reporting Period, and Yooma's shares began trading on the Canadian Securities Exchange on February 11, 2021.
  • Launch of Operations in Asia:   Yooma commenced the sale of CBD skincare and beauty products to consumers in China through its cross-border ecommerce channels on the Tmall Global platform.

A number of material acquisitions were also completed after the Reporting Period in furtherance of Yooma's strategic plan. Key operational highlights since the end of the Reporting Period including the following:

  • Acquisition of Wellness Brands from EMMAC Life Science Group: On March 11, 2021, Yooma completed a transaction to acquire the wellness brands of EMMAC Life Sciences Group, including Blossom (Swiss CBD skincare brand), MYO (UK nutraceutical brand focused on sports nutrition), and Hello Joya and What the Hemp (France based hemp-protein snack brands). Yooma issued 7,459,981 shares to EMMAC Life Sciences Limited at a price of CAD $1.38, valuing the transaction at US$8,106,000.
  • Acquisition of Socati Corp.: On March 19, 2021, Yooma completed a transaction to acquire Socati Corp., a leading processor of THC-free broad-spectrum hemp extracts and ingredients for use in CBD products. In total, the consideration paid by Yooma in connection with the Merger amounted to US$25,000,000, which was satisfied by the issuance of 23,320,896 common shares of Yooma at a price of CAD$1.34.

Selected Financial Highlights

Key financial highlights during the Reporting Period included the following:

<td style="border-top: solid black 1pt …
 (Expressed in USD)   For the year ended
December 31, 2020
  For the period from
incorporation July 10,
2019 to December 31,
Revenue $ 42,765    
Cost of sales   (86,276 )  

Full story available on Benzinga.com


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