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Prime Drink Group has signed a binding letter of intent to buy a majority stake in functional drinks brand Relax Downlow.

Prime plans to acquire 70% of the company through a combination of shares and cash payment. It will issue common shares worth CAD 255,000 (approx. $183,819), priced according to the ten-day volume-weighted average under CSE rules. A cash payment of CAD 95,000 (approx. $68,481) will also be made to the shareholders of 9375-4208 Quebec at closing.

Relax Downlow's founders will retain a minority stake in the company.

Relax Downlow is a beverage line designed for athletes, offering a ‘relaxing, natural beverage’ that is caffeine-free, sugar-free and gluten-free, as well as formulated to help recovery.

Olivier Primeau, VP of marketing for strategic vision and acquisitions at Prime, said: “This acquisition marks a new chapter for Prime, as we carry on our mission to innovate in the functional beverage sector by adding a revolutionary local brand with strong potential to our portfolio".

Steven Levac, founder and president of Relax Downlow, added: “I am very excited to be working with Olivier Primeau and the entire Prime team to take Relax Downlow to the next level. This brand, which I have wholeheartedly built with my partner Dario, is now well on its way to becoming a must-have in Quebec and beyond.”

Alexandre Côté, president and CEO of Prime, said: “We are thrilled to have Relax Downlow as part of Prime’s portfolio of brands. It will benefit from Prime's powerful media network. This is Prime's first foray into the better-for-you beverage market. We intend, with our innovation team, to continue exploring this market, which reflects the constantly evolving needs of our current and future customers."

Top image: © Relax Downlow