Pure Foods Tasmania Limited (ASX:PFT) entered into an agreement to acquire The Cashew Creamery Pty Ltd for AUD 0.42 million on March 31, 2021. The consideration price of AUD 0.36, plus working capital adjustments of approximately AUD 0.06 million with an approximate 52% and 48% split between cash and scrip. The consideration will be funded via a combination of the issue of 271,370 shares issued at AUD 0.737 per share under PFT's LR 7.1 placement capacity and cash from existing cash reserves.

The Cashew Creamery's Founder, Jen Bruyn Schmidt will continue to be actively involved in the business and will be driving new product development in plant-based food alternatives in collaboration with the team from Lauds. This will be underpinned by the strength and experience of PFT's group marketing and production teams. The Cashew Creamery had sales as of March 9, 2021 of approximately AUD 0.13 million. The transaction is subject to a few conditions including the assignment of the lease, final due diligence, and other customary conditions.

The transaction is expected to be completed on April 1, 2021.