Denver, COLORADO, December 21 2023 (NEWSWIRE) - NxGen Brands, Inc. (OTCMKTS: NXGB) (NxGen or the Company), (www.nxgenbrands.com) announces that its acquisition target has closed a licensing deal with an Australian nutritional supplements distributor, allowing them to license the products and for the Company to receive significant royalties through 2024 and beyond as the distributor sells to retail throughout the fast growing markets of both Australia and New Zealand.
According to IBISWorld the Australian nutrition and supplements market has a 2022 value in excess of $1.6bn with an annual growth rate of 2% year on year expected through much of the next decade, outpacing the 1.5% already seen between 2017 and 2022. Moreover, the market size of the Vitamin and Supplement industry in Australia has been growing faster than the overall economy.
Joseph Lawanson, CEO of NxGen, stated The Australian market for supplements and nutrition is growing as the population ages and more people are exercising and are concerned with their fitness levels. Many Australians are thinking about the connection between exercise and health, especially as they get older and are turning to fitness as a lifestyle choice. This is a hot, and growing, market and one that we can also expand the Storm Lifestyles Brand into throughout 2024. The dietary supplement and nutrition sector is expanding its market and developing new products to take advantage of opportunities and we are right in the center of that with this new licensing deal signed. Once the acquisition is closed at some point over the next ten to fourteen days, this will be an additional c.$125,000 of revenue that hits our topline every quarter, simply for licensing our products into Australia.
The acquisition target will likely have unaudited revenues of around $1m at closing for 2023, and is profitable, with NxGen already projecting a topline revenue figure for 2024, accounting for all of their recently acquired brands, of over $3.25m given current run-rate sales and growth rates.
About NxGen Brands, Inc.NxGen Holdings, Inc. is a publicly traded company under the symbol NXGB. The Company building build a profitable Nutritional Supplements company, comprising of several brands. www.nxgenbrands.com
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