(via Thenewswire.ca)
VANCOUVER, BC / TNW ACCESSWIRE / December 4, 2014 / First Growth Holdings Ltd. ("First Growth" or the "Company") (TSX-V: FGH) is pleased to announce the Company and its wholly owned subsidiary, WineOnline Silva Bay Services Ltd. ("WineOnline"), have entered into an operating agreement (the "Agreement") with Silva Bay Pub, Restaurant & Liquor Store Ltd (the "Owner"). Subsequently, the parties expect that WineOnline.ca website will launch in British Columbia in early 2015, providing British Columbian wine lovers access to its unique portfolio of wines, incredible online wine experience, and great door-to-door customer service.
"Establishing WineOnline.ca in British Columbia is an exciting milestone for our team" said Paul Guedes, President of First Growth. "WineOnline.ca is making significant progress in becoming a national e-commerce wine site addressing the majority of the wine customers of Canada."
Under the Agreement, WineOnline receives the sole and exclusive right to operate the Silva Bay Liquor Store and launch the online operations in British Columbia and is entitled to full profits and bears full responsibility for the online operations. In consideration, the Owner shall receive a cash consideration payable in tranches over a one year period, 200,000 commons shares of First Growth, and a performance fee based on operations.
The recent approval from the British Columbia Liquor Control and Licensing Branch on its application to become the Third Party Operator of the Silva Bay Liquor Store allows WineOnline to operate both the store and its ecommerce website in the Province.
British Columbia ranks the third in wine sales across Canada, with residents buying just under $1 Billion worth of wine in 2013/2014 ($962,664,000)1. Wine sales have increased approximately 16%, or $136 million, over the last 5 years indicating a strong and vibrant sector. Traditionally, almost all wine sales in the Province have been through bricks and mortar stores, as the online wine retail sector in British Columbia is still in its infancy and Canadian online wine sales are lagging behind other regions globally.
WineOnline intends to change this by providing wine lovers in BC, and across Canada, with its unique selection of wonderful wines that typically can't be found elsewhere in the Province, great customer experience, and home or office delivery that has been developed through a decade of online wine sales in Ontario.
"For years our friends in BC have been asking us to bring to them the same incredible online wine experience we've curated here Ontario. We are very excited to finally be able to do so, and with the launch of our new website in BC in early 2015, we're looking forward to becoming a major part of Province's wine community." Stated Aaron Bick, co-founder and GM of WineOnline.
Finder's fees may be paid by the Company or WineOnline, as applicable, in connection with the Agreement in accordance with the rules of the TSX Venture Exchange.
1 http://www.bcldb.com/files/2013-14%20LDB%20Annual%20Report.pdf
About First Growth
First Growth is a Canadian-based company that identifies and develops strong brands in the Canadian and international markets. Strong brands have a global reach in today's modern world with the rapid adoption of social media and advancements in technology. First Growth recognizes the potential for certain brands to penetrate international markets and will be focused on developing each one of its brands to its fullest potential.
WineOnline is the first brand that First Growth will develop. WineOnline, through its website WineOnline.ca, allows customers to shop for great unique wines that are not readily available in most stores, and have the wine delivered to your home or office. The direct-to-customer online wine business in Canada is far behind first world peer countries. First Growth views this as an enormous opportunity for the WineOnline.ca to establish itself as the industry leader.
Leveraging the relationships that WineOnline has established with some of the best wineries around the world, First Growth plans to import some of those brands into China, one of the fastest growing wine markets in the world. This emerging market is still in the infancy stage with massive potential for exponential growth. First Growth's team has intimate knowledge of the wine market in China that will assist in our rapid entry into the wine market.
First Growth will be evaluating and exploring other brands that have international opportunities for growth and investing in them in order to create increased shareholder value.
ON BEHALF OF FIRST GROWTH HOLDINGS LTD.:
"J. Paul Guedes"
J. Paul Guedes
President
FOR MORE INFORMATION, PLEASE CONTACT:
Corporate Communications
Tel: 604.688.9588
Email: info@firstgrowthholdings.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) completion of the terms of the Agreement; (b) that WineOnline.ca website will launch in British Columbia in early 2015; (c) the intention to provide wine lovers in BC, and across Canada, with a unique blend of wonderful wines; and (d) that finder's fees may be paid by the Company or WineOnline, as applicable, in connection with the Agreement in accordance with the rules of the TSX Venture Exchange. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company or WineOnline such as the willingness of the parties to proceed with the transactions, the approval of the transactions by the respective company boards, shareholders (if applicable) and regulatory authorities, satisfactory results of the due diligence investigations and current economic conditions. These risks and uncertainties could cause actual results and the Company's or WineOnline's plans and objectives to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
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