VANCOUVER, British Columbia – VGrab Communications Inc. an OTCQB-listed issuer, on July 2, 2019 entered into a Memorandum of Understanding (“MOU”) with Hampshire Motor Group (China) Limited (“HMG”), a related party, to acquire the Duesey Coffee and Chocolates outlets in China and Malaysia (“Duesey Coffee”).
Duesey Coffee is a spinoff brand of Duesenberg. Pursuant to the MOU, the Company will have six months from the signing of the MOU to conduct its due-diligence of Duesey Coffee and to negotiate the terms of the acquisition, which will retain profit sharing arrangements as contemplated under the Cooperation Agreement No:VIL/CA/HMGC/V180625/1 between VGrab and HMG and dated for reference June 25, 2018.
Joe Lim, the President of Vgrab, commented, “The MOU with Duesey Coffee is the first step in our entry into the retail market. We are exploring the global and local sourcing with opportunities to reach millions of coffee consumers within the Coffee Industry.
According to coffee market analyses reported, the growth rate of coffee consumption in China is around 20% annually, more than 2% above the global growth rate. Revenue in the China Coffee segment amounts to US$8,214m in 2019. The China market is expected to grow annually by 11.3% (CAGR 2019-2023). We believe this acquisition, if completed, will open many new potential business opportunities for VGrab.”
