TSXV: JK OTCQB: JKHCF FRA: 68Z
The Company Expects its First Six Licenses to be Exercised for Locations in Singapore in the Near Future
VANCOUVER, BC, Feb. 3, 2022 /CNW/ - Just Kitchen Holdings Corp. ("JustKitchen" or the "Company") (TSXV: JK) (OTCQB: JKHCF) (FRA: 68Z), an operator of ghost kitchens specializing in the development of delivery-only food brands, is pleased to announce that it has entered into an preferred partner licensing agreement (the "Agreement") with one of the world's largest dark kitchen operators ("Licensor") to license up to 20 of the Licensor's existing locations in the Asia-Pacific ("APAC") region on preferred terms relating to license fees and right to first refusal to license dark kitchen locations. Subject to the terms and conditions of the Agreement, the term length of each licensed dark kitchen location is three years.
JustKitchen expects its first six licenses to be exercised for locations in Singapore in the near future, with the first two locations scheduled to be licensed by mid-March and, therefore, a target date in the second quarter of 2022 for the Company to be operational in the incremental market. The Agreement enables JustKitchen to quickly and cost effectively launch ghost kitchens in premium locations within new jurisdictions. The APAC region was previously announced by the Company as being included in its international expansion plan for 2021-2022. Given the Licensor's vast coverage area, the Agreement enables JustKitchen to roll out its growth strategy on favourable terms simultaneously across multiple countries, if so elected to be exercised in such a manner by management.
"The signing of this Agreement on preferred terms expedites JustKitchen's entry into the Singapore market, which follows our entry into Hong Kong and soon to be Philippines from our home base in Taiwan. We expect to launch our first ghost kitchens with a selection of our best proprietary menus and partner food brands and our business development team will be working to secure licenses for the virtual food rights to local hero brands in Singapore as well," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen. "JustKitchen continues to grow its footprint internationally, establish relationships with major counterparties, expand its food brand portfolio, optimize its tech stack and ultimately strengthen its competitive position in the ghost kitchen industry. Accordingly, I am pleased with how 2022 has begun and look forward to another year of rapid growth for the Company," added Mr. Chen.
The Licensor is a Los Angeles-based company that has become the world's largest licensor of dark kitchens. It specializes in revitalizing distressed real estate spaces into functional locations for businesses in trending industries, such as online retail and food delivery mobile applications. It also offers software solutions for companies seeking to create delivery-only restaurants. The Licensor aids smart kitchens with real estate, infrastructure, and software needs. It aims to allow restaurant entrepreneurs to start their businesses with lower real estate costs, more efficient labor costs, and lower upfront costs.
Service Provider Engagement
The Company announces that it has retained IAM VENTURES ("IAV") to provide investor marketing services to the Company with the goal of creating heightened awareness of JustKitchen and its brand in the market and achieving a broader reach through education across the investment community (the "Services"). IAV has agreed to comply with all applicable securities laws and the policies of the TSX Venture Exchange (the "TSXV") in providing the Services. The agreement between the Company and IAV is for a term of one year. IAV shall be paid an upfront cash fee of USD 150,000. IAV has also been granted 200,000 options to purchase common shares of the Company, subject to TSXV acceptance. Each option is exercisable to purchase one common share of the Company for five years at a price of CAD 1.07 per common share in accordance with the terms of the Company's stock option plan and subject to certain vesting provisions. Neither IAV, nor any of its directors and officers currently own any securities of the Company. IAV is an arm's length party to the Company.
Corporate Update
The Company also announces that Kent Wu has stepped down as the JustKitchen's Chief Operating Officer ("COO") to facilitate a move from the Company's headquarters to Singapore in order to focus on leading the Company's international expansion efforts. Mr. Wu continues on as a director of the Company. The COO position will remain open for the time being.
ABOUT JUSTKITCHEN
JustKitchen is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in Taiwan and Hong Kong with plans to expand operations to other Asian countries. JustKitchen uniquely utilizes a hub-and-spoke operating model, which features advanced food preparation taking place at larger hub kitchens and final meal preparation taking place at smaller spoke kitchens located in areas with higher population densities. The Company combines this operating model with online and mobile application-based food ordering fulfilled by third-party delivery companies, to minimize capital investments and operating expenses and reach more customers in underserved markets. The Company's other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add select grocery items to meals ordered through JustKitchen.
For more information about the Company, please visit investors.justkitchen.com. JustKitchen's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur including but not limited to the Company's comments regarding its first six licenses to be exercised for locations in Singapore in the near future; the launch of its first ghost kitchens with a selection of its best proprietary menus and partner food brands; and its business development team working to secure licenses for the virtual food rights to local hero brands in Singapore. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, including those risk factors identified in the Company's prospectus dated March 26, 2021, and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Just Kitchen Holdings Corp.
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