Delivering on its commitment to steer strategic alliances, we are pleased to announce a new Joint Venture between NW Tech Capital (OTC:NWTT) and TROPICSLAB. NW Tech Capital is joint venturing with TROPICS-LAB to release multiple celebrity skin care brands.
The joint venture will be a category leader in skin care, cosmetics, and personal care, and will strive to be the largest global consumer Beauty and Wellness business for people of color. Based on several years of intensive clinical research by Tropicslab, the joint venture is expected to be one of the best players in key geographies, including the United States, Europe, Africa, India, Australia and Asia.
The marketing strategy that this Agreement shall steer is to do joint ventures and sign contracts with a selection of celebrities globally, particularly in the United States and all 54 countries in Africa.
NW Tech Capital is a publicly traded diversified holding company(OTC:NWTT) that was founded in1996. The company’s long-term goal is to be the leader in the beauty and wellness industry, clean energy sector through lithium mining, carbon sequestration, and emerging new technologies. NW Tech Capital plans to merge, acquire and/or joint venture with complimentary companies across various sectors of the beauty, clean energy and technology industries in an effort to build a portfolio of synergistic businesses that will bring NW Tech Capital cashflow, revenues, value, and position us as a leader in the emerging new technology industry.
TropicsLab is a certified (Cosmetics GMP) private label cosmetics, skin and personal care research and development company for the creation of unique line of beauty products. They are specialized in the formulation of high-end, premium market cosmetics, skin and personal care products, private labeling and custom formulations.
The subject of tropical skin care is understudied and under researched and has not been given much attention. We all agree that extrinsic factors (such as sun exposure, air pollution, humidity etc.) are highly responsible for the numerous skin issues we encounter. In addition, various research and clinical studies have concluded that tropical skin possesses unique characteristics that are different from the skin of individuals who live in temperate or polar climatic areas. Hence the needs and requirements of tropical skin care are different from the needs of other climatic regions.
NW Tech Capital is joint venture with Tropicslabs to release multiple celebrity skin care brands based on different country specific demographics, climatic conditions, federal regulations and local organic ingredients. This joint venture with TROPICSLAB will exclusively manufacture products for all these celebrity brands.
Both NW Tech Capital and Tropicslab are very intentional about their commitment to creating successful collaborations, and we look forward to working together to unlock the potential of their combined businesses.
Under the terms of the transaction, NW Tech Capital will receive a 50% equity stake in the joint venture. Each party will have the right to independently appoint one out of the three members of the joint venture’s board, and together with the executives of Tropicslab, appoint a third neutral party. The transaction is expected to yield high returns in peak cost synergies and to be accretive for both companies.
In addition, given that the Beauty and Wellness division of NW Tech is expected to record high margins, the consolidation is expected to have a positive impact on the operating margins of both companies over the next several years. Until separation, the joint venture will be consolidated in NW Tech’s financial statements.
Following the integration of the combined business, NW Tech does not intend to separate the joint venture as an independent company, but rather create and maintain a BEAUTY AND WELLNESS DIVISION. Both parties will have the option to decide whether and when to initiate a separation of the division, the subsequent creation of an independent company and a listing in the stock markets, as an independent publicly traded company.
The combination of these leading businesses with distinct regional and category strengths will be more sustainable and broader in scope than either company individually. We believe that this joint venture is a great opportunity to ensure the future success of NW Tech Capital’s Beauty and Wellness division while unlocking meaningful after-tax value for NW Tech Capital shareholders.
DISCLOSURE NOTICE:
The information contained in this release is as of April 2022. NW Tech Capital assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.
This release contains forward-looking information related to NW Tech Capital’s, and Tropicslab’s beauty and wellness businesses and an agreement to create a joint venture to combine NW Tech’s and Tropicslab’s beauty and wellness businesses that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this release include, among other things, statements about the potential benefits of the proposed joint venture and transaction, anticipated accretion and cost savings, the companies’ plans, objectives, expectations and intentions, the financial condition, results of operations and business of the proposed joint venture, the proposed joint venture’s products and potential, the anticipated impact of the consolidation of the NW Tech Capital’s beauty and wellness business from its financial statements, Tropicslab’s agreement to not separate the joint venture as an independent company, and the anticipated timing of closing of the transaction. Risks and uncertainties include, among other things, risks related to the satisfaction of the conditions to closing the transaction (including the failure to obtain necessary regulatory and Tropicslab shareholder approvals) in the anticipated timeframe or at all and the possibility that the transaction does not close; risks related to the ability to realize the anticipated benefits of the transaction, including the possibility that the expected benefits and cost savings from the proposed transaction will not be realized or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; the possibility that a future separation of the joint venture may not occur; disruption from the transaction making it more difficult to maintain business and operational relationships; negative effects of the announcement or the consummation of the proposed transaction on the market price of NW T’ech Capital’s common stock and on NW Tech Capital’s operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed transaction; other business effects, including the effects of industry, market, economic, political or regulatory conditions; future exchange and interest rates; changes in tax and other laws, regulations, rates and policies; future business combinations or disposals; and competitive developments.
A further description of risks and uncertainties shall be found in NWTT’s Annual Report on Form 10-K for the fiscal year ending December 2022, and in its subsequent reports on Form 10-Q, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Information and Factors That May Affect Future Results,” as well as in its subsequent reports on Form 8-K, all of which shall be filed with the U.S. Securities and Exchange Commission and available at www.sec.gov.
Information about Tropicslab’s business included in this release was provided by Tropicslab management.
Media Contact
Company Name: NW Tech Capital
Contact Person: Cedric Yengo, CEO
Email: Send Email
Country: United States
Website: https://nwttcapital.com/
