Heritage Brands Limited (NSX:HBA) Sale of Innoxa Brand

Sydney, June 27, 2024 AEST (ABN Newswire) - Heritage Brands Limited (NSX:HBA) is pleased to announce that it has now entered into an agreement to sell its wholly owned subsidiary, Innoxa Marks Pty Ltd ("Innoxa Marks"). Innoxa Marks has never traded and owns the "Innoxa" brand name and associated trade marks. It owns no other assets. The party that has agreed to buy Innoxa Marks is Metro Cafe Sydney (No.1) Pty Ltd ("Metro Cafe") and the purchase price agreed to be paid by Metro Cafe is $800,000. Following a competitive tender process for the sale of the Innoxa brand, no prospective buyer matched the price offered by Metro Cafe.

Under the terms of the sale agreement, HBA is granted a licence to distribute Innoxa product in consideration for paying a royalty to Metro Cafe of 10% of net sales price achieved on product sales.

Metro Cafe is associated with William McCartney, a director of the Company.

The sale is subject to some conditions which the Directors of the Company expect to be satisfied in July 2024.

The decision to sell the Innoxa brand followed a review of the Company's brand portfolio, which review determined that Innoxa was a non-core brand. The sale of the Innoxa brand will allow HBA to concentrate on its core brand priorities.