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.
