CSM announces acquisition of wellness brand, Me Today

11 December 2019

CSM announces acquisition of wellness brand, Me Today

The directors of CSM Group Limited (NZX: CSM) announce that CSM has reached
agreement to acquire 100% of The Good Brand Company Limited, a sales and marketing
business and Me Today Limited (which represents the wellness brand Me Today
tm
), both of
which operate in the health and wellness sector.

Me Today is a New Zealand health and wellness brand that produces premium quality
products clearly linking supplements and natural skincare, ultimately making it easier for
consumers to shop. Me Today products are formulated using highly absorbable forms of
ingredients and, where possible, are either vegetarian or vegan friendly. The Me Today
range offers a modern solution to modern problems.

Me Today was founded by Grant Baker, Stephen Sinclair and Michael Kerr. Grant and
Stephen have a long history of success in business start-ups, being involved in the
successful listings of 42 Below and Ecoya, as well as Ecoya’s acquisition of skincare brand
Trilogy, together with a significant investment in Turners Automotive Group. Michael has a
vast amount of experience in the healthcare and wellness sectors and was responsible for
establishing the Swisse brand in NZ and, more recently, was the general manager of the
skincare brand, Trilogy.

Grant, Stephen and Michael joined forces to create Me Today as they believe there to be
significant opportunity for a new brand in the wellness space. Both the Supplements and
the Natural Skincare categories in NZ and overseas have experienced significant growth in
recent years. The new venture has been launched with supplements and skincare as the
platform but the founders see significant opportunity to further expand the product
offering and take advantage of new trends within the health, beauty and wellbeing spaces.

The Me Today supplement and natural skincare ranges have recently launched into New
Zealand pharmacy through the Green Cross Health network of Unichem and Life Pharmacy
stores. Green Cross Health has a network of 360 stores nationwide and Me Today expects
distribution to reach 80% of these stores within six months. To date, Me Today is stocked in
120 Green Cross Health stores.

The founders believe there are significant opportunities to take the brand offshore and into
markets such as Australia, North America, United Kingdom, Asia and China, through a cross
border e-commerce model. Globally, $128 billion is spent on supplements
1
every year and,
in New Zealand, circa $150 million is spent on supplements and natural skincare in the
Pharmacy channel
2
.


1
Nutrition Business Journal 2017
2
IRI OTC Pharmacy scan sales MAT to 06/10/19

2
Consumers are seeking mental and physical wellness solutions and seem to be, more than
ever before, interested in natural options, particularly natural products from countries such
as New Zealand.

The capital available in CSM Group, post completion, will help accelerate growth of existing
products in New Zealand and other offshore markets as well as to provide capital to invest
into new, unique product development.

In addition to Me Today, the founders have created The Good Brand Company Limited
which was established to launch, sell and market additional brands. The Good Brand
Company represents Me Today and other agency branded business and is seeking other
agency brands to complement its existing activity. The Good Brand Company forms part of
the transaction.

Transaction Structure

The transaction values both the Me Today and Good Brand Company businesses at $5.55
million including $1 million of cash, whilst the listed shell of CSM is valued at $2.1 million.
CSM will satisfy the consideration required to buy The Good Brand Company Limited and
Me Today Limited by an issue of 1,110,000,000 shares at an issue price of $0.005 per share.

CSM intends to undertake a placement of up to $500,000 at $0.005 per share to wholesale
investors (the same price that applies to the issue to the Me Today vendors).

Separately, to ensure that existing CSM shareholders have an opportunity to maintain their
shareholding without significant dilution, CSM intends undertaking a 1 for 2 renounceable
rights issue at 0.005. Further details of the rights issue will be advised in due course.

CSM expects to raise $1.0 - $1.5m from the placement and the rights issue.

After the transaction, the Me Today founders will own approximately 60.8% of the ordinary
shares in CSM
3
. The founders’ shares will be placed in escrow for a period of 12 months
from the settlement date.

Shareholder approval and timing

The transaction is subject to approval by the shareholders of CSM under the NZX Listing
Rules and the Takeovers Code. CSM expects to send information to shareholders in mid-
February 2020, to enable them to vote on the transaction at a shareholders’ meeting in
mid-March 2020. The information provided to shareholders will include a listing profile of

3
Assuming $1.5m is raised from the placement and rights issue. If $1m is raised from the placement and
rights issue, the me|today founders would own approximately 64.1%.

3
Me Today and an independent adviser report prepared to comply with requirements of the
Takeovers Code and Takeovers Panel guidance.

Subject to the appropriate approvals, the completion date is expected to be 1 April 2020. At
this time CSM would change its name to Me Today Limited. At completion, CSM is
expected to have approximately $4 million in cash which will be used to fund further
growth of the Me Today brand.

The board of the Company, post completion, will consist of the three Me Today founders
with Grant Baker as the chair. Existing chair, Roger Gower, will remain as an independent
director. In addition, there will be up to two new independent directors appointed.

ENDS

For further information on CSM and the acquisition transaction, please contact:
Roger Gower, Chairman, CSM Group Limited, email: roger@gower.ac
, mobile: 027 591
4112

For further information on Me Today, please contact:
Grant Baker, mobile: 021 729 800

For media assistance including imagery, please contact: Jackie Ellis on 027 246 2505 or
email jackie@ellisandco.co.nz



Further information follows:
• About Me Today
• About The Good Brand Company.

4
ABOUT ME|TODAY
www.metoday.com

Me Today is built on the ethos that people need to be their best to be able to look after the
people around them. Me Today is a New Zealand Health and Wellbeing brand that clearly
links supplements and skincare under the one brand. Me Today produces quality
supplements that are made from premium quality formulas based on scientific and
traditional evidence, as well as skincare that is cruelty free vegan/vegetarian and highly
natural. The Me Today range offers a modern solution to modern problems. The Me Today
mantra is around achieving your personal best.

Me Today Supplements

Eight modern products formulated for busy lifestyles, the core product pillars include Men’s
and Women’s Daily, Protect, Energise, Goodnight, Beauty, Move and Becalm, a range of
supplements to help with everything from general wellbeing to immune function, energy,
mobility and relaxation. All products are encapsulated in easy to swallow vegetable capsules
and are packed in glass vessels for efficacy and environmental reasons.

• Premium Quality Formulas
• Based on Scientific & Traditional Evidence
• Effective & Easy to Swallow Vege Caps
• Highly Absorbable Forms of Ingredients

Me Today Skincare

The Women’s Daily Skincare range, is enriched with nine essential botanicals, antioxidants
and vitamins from the Me Today Women’s Daily supplement and is blended specially to
enrich and hydrate your skin. The range spans the full spectrum from Micellar Gel, Cream
Cleanser, Mist Toner, Moisturiser, and Serum to Eye Cream, Night Cream and a replenishing
Face Mask.

The Protect skincare range is enriched with botanicals, antioxidants and vitamins from the
Me Today Protect supplement and is blended specially to balance and comfort your skin.
Products include a Lip Balm, Hand Wash, Hand Lotion and Hand Cream.

• Cruelty Free
• Vegan/Vegetarian Friendly
• No Parabens, SLS/SLES, Phthalates
• Enriched with botanicals, antioxidants & vitamins
• 95%+ Naturally derived ingredients

5


The Me Today range makes it easier for people to be able to put themselves first, by
providing efficacious options across multiple categories that are easy to shop and that
cover many health and beauty needs - all made with the environment in mind.

Me Today Brand Roadmap

Vision – To be the leading wellness brand in pharmacy
Mission – To help consumers live their best lives and feel good, both on the inside and
outside
Ambition – To be the ‘must have’ products to enhance consumers’ general wellbeing






me I today – unlocking your best tomorrow.

6


ABOUT THE GOOD BRAND COMPANY LIMITED

Established in 2018 to grow agency brands. Specialists in the Health, Natural Skincare and
Wellbeing spaces. Currently selling products in Pharmacy (Green Cross Health, Chemist
Warehouse, Independent Pharmacy) and Health stores, with a dedicated national sales team.
On behalf of its brand partners currently The Good Brand Company has products in over 300
stores around New Zealand.

As part of the service provided, The Good Brand Company is also a commercial partner to
brands, offering services such as: key account management, supply and demand reviews, 4pl
warehousing & logistics options, go to market strategy input, trade marketing, brand
marketing and ultimately a good level of understanding of the New Zealand retail
environment.

The Good Brand Company has positioned itself as the New Zealand sales partner for brands
wanting an effective yet efficient way to sell into New Zealand retailers.

The Good Brand Company believes in working with Good Brands, has Good people and offers
Good service.

ENDS