Minrex Resources (ASX: MRR) has entered into a conditional agreement to acquire Skin Elements, an Australian organic skincare company, for $8.4 million.
Minrex has been granted a 20 business day exclusivity period in which it is to complete its due diligence.
Skin Elements' Soléo Organics all natural Sunscreen has regulatory approvals in place and is ready for full scale market launch.
Soléo Organics has key regulatory approvals in place with the Therapeutic Goods Administration , Food and Drug Administration, Health Canada and the Japanese Ministry of Health.
Elizabeth Jane natural cosmetic products have been pre-market launched and is planned to be further developed for future release.
It is proposed that following completion of the Transaction, Minrex will focus on the development and expansion of the natural skincare product range.
Skin Elements has spent over $8 million on a research and development program to date; Soléo Organics Sunscreen has already won three major international awards.
Sales of the skincare product range have exceeded $3 million over the pre-market release stage with distributors in more than 15 countries.
Minrex will pay and assume existing liabilities of an aggregate amount equal to $8,400,000 comprising $7,400,000 satisfied by the issue of 46,250,000 shares, and $1,000,000 of assumed current liabilities.
In addition, Skin shareholders will be issued with 25 million 3 year options in Minrex, exercisable at $0.20.
Completion is conditional upon Minrex obtaining all necessary regulatory and shareholder approvals pursuant to the ASX Listing Rules.
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