Yoshitsu Co., Ltd Enters into Definitive Agreement to Acquire Tokyo Lifestyle Limited
July 22 2022 - 7:00AM
Yoshitsu Co., Ltd (“Yoshitsu” or the “Company”) (Nasdaq:
TKLF), a retailer and wholesaler of Japanese beauty and health
products, as well as other products in Japan, today announced
that on July 20, 2022, the Company entered into a definitive
agreement (the "Agreement") with All Seas Global Limited to acquire
100% equity interests in Tokyo Lifestyle Limited (“TL”), a company
principally engaged in the import and retail of Japanese beauty and
cosmetic products in Hong Kong and engaged in the live e-commerce
business through its wholly-owned subsidiary, Shenzhen
Qingzhiliangpin Network Technology Co., Ltd. (“SQNT”). This
acquisition is a critical initiative of the Company's business
strategy to boost the Company's business expansion in the Southeast
Asia market and advance the digital transformation of live
streaming e-commerce in its retail business.
Pursuant to the Agreement, Yoshitsu agrees to
acquire 100% of the equity interests in TL in consideration of the
sum of JPY392,000,000 in cash (approximately US$2,805,192), subject
to certain terms. The transaction contemplated by the Agreement was
approved by the Company's board of directors at a meeting on June
27, 2022, with the closing expected to occur by the end of July
2022.
Mr. Mei Kanayama, the Principal Executive
Officer of Yoshitsu, commented, “We are extremely pleased to
take another initiative in Yoshitsu's global business expansion.
The capabilities of TL and SQNT and our expansion and digital
transformation strategy are well matched. With the acquisition of
TL, we expect to improve our operational efficiency and establish a
solid foundation in Hong Kong to develop the Southeast Asian market
further and strengthen our brand awareness in the region. SQNT is
dedicated to cultivating key opinion leaders (“KOLs”), who are
frequently approached by brands in the hopes that these KOLs will
actively promote their products via online channels. The foregoing
strategy is expected to improve our customers’ shopping experience
and meet new market demands. We expect the acquisition of TL to
strengthen our position in the marketplace and deliver higher value
to our shareholders.”
About Yoshitsu Co.,
Ltd Headquartered in Tokyo, Japan, Yoshitsu Co., Ltd
is a retailer and wholesaler of Japanese beauty and health
products, as well as other products. The Company offers various
beauty products (including cosmetics, skin care, fragrance, and
body care products), health products (including over-the-counter
drugs, nutritional supplements, and medical supplies and devices),
and other products (including home goods, food, and alcoholic
beverages). The Company currently sells its products through
directly-operated physical stores, through online stores, and to
franchise stores and wholesale customers. For more information,
please visit the Company’s website
at https://www.ystbek.co.jp/irystbek/.
Forward-Looking
Statements All statements other than statements of
historical fact in this press release are forward-looking
statements, within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in
the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements involve known and unknown
risks and uncertainties and are based on current expectations and
projections about future events and financial trends that the
Company believes may affect its financial condition, results of
operations, business strategy, and financial needs. Investors
can identify these forward-looking statements by words or phrases
such as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to," or other similar expressions. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results and encourages investors to review other
factors that may affect its future results in the Company’s
registration statement and in its other filings with
the SEC.
For more information, please
contact:
Yoshitsu Co., Ltd Investor
Relations Department Email: ir@ystbek.co.jp
Ascent Investors Relations LLC
Tina Xiao President Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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