TORONTO--(BUSINESS WIRE)--Facedrive Inc. (“Facedrive”) (TSXV: FD), a Canadian “people-and-planet first” tech ecosystem, is pleased to announce that Facedrive has entered into a purchase agreement (the “Acquisition”) with each of the shareholders of Food Hwy Canada Inc. (“Food Hwy”), one of Canada’s leading “ethnic and student focused” food delivery service. Pursuant to the terms of the Acquisition, Facedrive acquired all of the outstanding shares of Food Hwy for consideration which consisted of $1,500,000 in cash and 551,370 Facedrive common shares (the “Consideration Shares”) valued at $7,600,000 based on a 30-Day volume weighted average trading price of Facedrive’s common shares. In connection with the Acquisition, Facedrive also acquired the brand assets, technology, IP, and trademarks of Food Hwy which will continue to serve the latter’s customers, drivers and restaurant partners under the Food Hwy brand and using the Food Hwy app.
Food Hwy was founded in 2014 by Founder and CEO Di Han. Food Hwy has grown aggressively and currently operates in 18 Canadian cities. Over 1,000 registered drivers serve Food Hwy’s 1,200+ restaurant partners with over 120,000 active users. Daily food orders currently range from 3,500 to 4,000 per day. Food Hwy currently employs approximately 90 people with over 25 people in software and application development. Facedrive expects Food Hwy to deliver CAD $10.5M in revenue in calendar year 2020, and expects to grow its combined Food Delivery business to CAD $30M in revenue in 2021 in a segment currently worth over USD $130bn globally with a total of 1.2bn users (Statista, 2020).
As part of Facedrive’s Foods division, Food Hwy will continue its razor sharp focus on the “ethnic and student segment” while expanding into mainstream markets for ethnic foods. It will continue to execute its city expansion strategy with a plan to expand to 30 additional cities within the next 18 months. Facedrive Foods will continue its mainstream food delivery strategy positioning itself as the environmentally and socially responsible alternative to behemoth incumbents such as Uber Eats, Doordash and Skip the Dishes. Coming on the heels of the Company’s acquisition of Foodora Canada, the Acquisition will further accelerate the growth as well as market breadth and depth of Facedrive’s Foods division.
“We are very excited to join the Facedrive ecosystem,” said Di Han, Founder and CEO of Food Hwy. “We have agreed to join forces with Facedrive because we believe in its vision of environmental and social responsibility. We believe this new relationship will allow the Food Hwy brand to accelerate dramatically our already remarkable growth.”
“Food Hwy is an innovative and high growth organization that has mastered its business model by retaining sharp focus on its customers,” said Sayan Navaratnam, CEO and Chairman of Facedrive. “Looking at the recent acquisition of Grubbhub by the Amsterdam-based Just Eat, we similarly expect this transaction to serve as a launchpad for us to broaden operations of Facedrive Foods into multiple Canadian markets and niches, thus expanding our already wide reach. In our turn, we are very excited to have an opportunity to scale up Food Hwy’s sales and marketing and believe Food Hwy is an ideal fit for our eco-friendly technology ecosystem”.
Facedrive Foods and Food Hwy will also continue to be committed to community wellbeing, offering healthy, nutritious, and sustainably sourced choices offered by like-minded restaurant businesses, with consumers’ wellness in mind. As socially responsible brands, Facedrive Foods and Food Hwy will continue to take a proactive approach to dealing with the COVID-19 pandemic by ensuring the highest levels of safety for customers and continuing to provide comprehensive training in COVID-19 safety protocols.
The Consideration Shares are subject to a four-month hold period. Pursuant to the terms of the Acquisition, additionally, 33,906 of the Consideration Shares are subject to a 90-day lock-up, 159,358 of such shares are subject to a 12 month lock-up, and the balance are subject to an 18 month lock-up.
Facedrive is a multi-faceted “people-and-planet first” tech ecosystem offering socially-responsible services to local communities with a strong commitment to doing business fairly, equitably and sustainably. As part of this commitment, Facedrive’s vision is to fulfil its mandate through a number of verticals that either leverage existing technologies of the Company or project considerable synergies with existing lines of business (the “Facedrive Verticals”). The Facedrive Verticals include its: rideshare business (“Facedrive Rideshare”), sustainable e-commerce platform (“Facedrive Marketplace”), last-mile food-delivery service (“Facedrive Foods”), social media enterprise (“Facedrive Social”) and its contact-tracing and sustainable health services business (“Facedrive Health”). Facedrive Rideshare was the first to offer green transportation solutions in the TaaS space, planting thousands of trees and giving users a choice between EVs, hybrids and conventional vehicles. Facedrive Marketplace offers curated merchandise created from sustainably sourced materials. Facedrive Foods offers contactless deliveries of a wide variety of foods with the focus on healthy foods right to consumers’ doorsteps. Facedrive Health develops innovative technological solutions to the most acute health challenges of the day. Facedrive is changing the ridesharing, food delivery, e-commerce and health tech narratives for the better, for everyone. For more about Facedrive, visit www.facedrive.com.
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Certain information in this press release contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.
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