Edible Garden & Narayan Group: A Recipe for Market Domination

In a strategic move that could redefine the sustainable food market, Edible Garden AG Incorporated (Nasdaq: EDBL, EDBLW) has signed a non-binding letter of intent to acquire Narayan Group, a Slovenia-based organic coconut and superfood products manufacturer. This merger, if successful, will create a powerhouse in both European and North American sustainable food markets, with combined revenues projected to exceed $60 million in 2025.

Edible Garden, a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, has been on a growth trajectory since its IPO in 2022. The company's commitment to vertical integration and sustainability has driven its success, with revenue growth of 27.6% year-over-year in the first quarter of 2024. Narayan Group, on the other hand, has demonstrated consistent revenue growth, with expected annual revenue of $31.5 million in 2024, up from $26.9 million in 2023. The acquisition of Narayan Group by Edible Garden is expected to create immediate short-term and sustainable long-term shareholder value through scalable growth and increased market share in the growing market sector they are addressing.

The combined entity will benefit from Narayan's vertically integrated supply chain and leadership in the European market, combined with Edible Garden's innovative CEA technology and established distribution channels in North America. This strategic transaction is expected to drive operational efficiencies and provide cross-selling opportunities for the combined product lines throughout North America and Europe, creating immediate short-term and sustainable long-term shareholder value through scalable growth and increased market share in the growing market sector they are addressing.



The acquisition terms include issuing EDBL common stock to Narayan shareholders, who will receive a majority of fully-diluted outstanding shares. The deal is subject to due diligence, €6.0 million equity financing for Narayan, a reverse stock split of EDBL shares, and stockholder approval. This non-binding LOI represents a potentially transformative deal for EDBL, with the acquisition target bringing $31.5 million in expected 2024 revenue and demonstrated profitability with $3.0 million EBITDA in 2023.

In conclusion, the acquisition of Narayan Group by Edible Garden is a strategic move that positions the combined entity as a leader in both European and North American sustainable food markets. With projected combined revenues exceeding $60 million in 2025, this merger is expected to create immediate short-term and sustainable long-term shareholder value through scalable growth and increased market share in the growing market sector they are addressing. The acquisition is subject to certain conditions precedent, including due diligence, equity financing, and stockholder approval.