Nocera Inc NCRA has acquired an 80% controlling interest in Meixin Institutional Food Development Co Ltd, a Taiwan-based company, for $4.3 million.
Meixin, a food processing and catering company established in 2003 is engaged in producing hot and frozen meals, bento boxes, and group meals.
It also processes vegetables and fruits for other companies in the food industry.
What Happened: As part of Nocera's vertical integration effort of turning its seafood into valuable meals, Meixin will produce different food products for Nocera to sell through its distribution channel, including bento boxes, takeaway seafood porridge, BBQ eel rice, and seafood fried rice.
Meixin has been catering and serving bento boxes to local banks and companies for the last 19 years.
Why It Matters: Jeff Cheng, Nocera's CEO, commented, "our Recirculatory Aquaculture Systems are green using recirculating water, and we believe our bento boxes and food products will generate revenue daily."
The acquisition is expected to generate up to $10 million in revenue for fiscal 2023.
Recently, the company closed its underwritten public offering of 1,880,000 units, at $3.50 per unit, for aggregate gross proceeds of $6.58 million.
Price Action: NCRA shares closed at $2.64 on Wednesday.
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