ZINZINO AB (PUBL): Zinzino announces merger of It Works! into the Zinzino family of businesses for increased distribution power in North America and Europe

Core Viewpoint - Zinzino has successfully merged with the US-based direct sales company It Works! in an all-share transaction, acquiring its operational assets and 100% of its shares, marking a significant step in Zinzino's growth strategy focused on health and well-being [1][3]. Financial Details - The fixed purchase price for the merger is USD 30 million, settled through a directed issue of 1,843,840 B-shares at a subscription price of SEK 145.62 per share, which reflects the volume-weighted average price prior to the transaction [2][5]. - An additional purchase price of up to USD 4 million may be paid over five years based on future sales, also settled in newly issued B-shares [2][5]. Strategic Importance - The merger is expected to generate over USD 60 million in additional revenue for Zinzino in 2026, leveraging synergies from combined networks and Zinzino's test-based product concept [4]. - The partnership aims to enhance Zinzino's distribution power, expand into new markets, and capitalize on current trends in personalized health and wellness solutions [6][7]. Shareholder Impact - The directed issue will increase Zinzino's total shares from 36,319,540 to 38,163,380, resulting in a dilution of approximately 4.83% of total shares and 2.24% of voting rights [10].