~ Granted U.S. Distributor Rights of OSRAM branded General Lighting Luminaires for Horticulture Applications ~
~ Company Diversifies Lighting Portfolio with Premium Osram LED Luminaire Line to Complement EfinityUSA's Mid-Range LED Line ~
~ Sales to Commence in Third Quarter of 2024 ~
ONTARIO, Calif., June 6, 2024 /PRNewswire/ -- Nature's Miracle Holdings Inc. (NASDAQ: NMHI) ("Nature's Miracle" or the "Company"), a leader in vertical farming technology and infrastructure, today announced that it has signed a strategic agreement with Traxon Technologies Limited ("Traxon") to distribute OSRAM general lighting luminaires for horticulture lighting applications in the U.S. Traxon Technologies, together with its control brand, e:cue, is a global leader in solid state lighting and control systems providing complete, sustainable and intelligent lighting solutions. Prior to December 2022, Traxon was the LED lighting division under ams OSRAM, a global leader in innovative light and sensor solution more than 100 years of industry experience and Traxon is now a licensee of Osram general lighting products.
With this agreement, Nature's Miracle will be the exclusive authorized distributor and seller of OSRAM General Lighting Luminaires for horticulture applications in the U.S., recognized for its innovative smart sensor technology and LED lighting that adapts to controlled environments to yield optimal crop growth combined with energy efficiency and cost savings. Nature's Miracle expects sales of this new line to begin in the third quarter of 2024. Under the Agreement, minimum sales are expected to be reach at least $8 million in 2026.
Management Comments
James Li, Chairman and Chief Executive Officer of Nature's Miracle, commented, "We are thrilled to partner with Traxon as the exclusive distributor of its industry leading Osram branded luminaires in the United States for horticulture lighting applications. Nature's Miracle is well-positioned as a leader in designing and sourcing products for controlled environments in the agriculture industry. The Osram General Lighting Luminaire line will be instrumental to achieve the scale and progress we seek in our objective of supplying innovative products that optimize the operational efficiency of vertical farms."
Mr. Li continued, "The first half of 2024 has been a transitional period for Nature's Miracle as we entered the public markets at a challenging time for emerging growth companies. We are highly encouraged by today's agreement which expands our product offering, our largest revenue source, to further drive top line growth. Looking forward, Nature's Miracle's strategic focus will include sourcing additional distribution agreements, similar to today's announcement with Traxon, while we continue to make progress on the research and development of our MiracleTainer series container farm product and parallel offerings to create a robust portfolio of solutions that meet the needs of our enterprise customer's development of comprehensive vertical farms. With the addition of OSRAM luminaires as a catalyst, we are encouraged with the path forward for Nature's Miracle into the second half of 2024 as we continue to increase our market share of indoor farming."
About Nature's Miracle Holdings Inc.
Nature's Miracle (www.Nature-Miracle.com) is a growing agriculture technology company providing equipment and services to growers in the Controlled Environment Agriculture ("CEA") industry which also include vertical farming in North America. Nature's Miracle offers hardware to design, build and operate various indoor growing settings including greenhouse and indoor-growing spaces. Nature's Miracle, through its two wholly-owned subsidiaries (Visiontech Group, Inc. and Hydroman, Inc.), provides grow lights as well as other hydroponic products to hundreds of indoor growers in North America. Nature's Miracle has also developed a robust pipeline to build commercial-scale greenhouse in the U.S. and Canada to meet the growing needs of fresh and local vegetable products. Nature's Miracle has established its first manufacturing footprint in North America with its grow-light assembly plant in Manitoba, Canada and is expected to set up additional manufacturing/assembly facilities in North America.
Forward-looking Statements
Except for historical information contained herein, this press release contains certain "forward-looking statements" within the meaning of the federal U.S. securities laws with respect to the proposed business combination between Lakeshore and Nature's Miracle, the benefits of the transaction, the amount of cash the transaction will provide Nature's Miracle, the anticipated timing of the transaction, the services and markets of Nature's Miracle, our expectations regarding future growth, results of operations, performance, future capital and other expenditures, competitive advantages, business prospects and opportunities, future plans and intentions, results, level of activities, performance, goals or achievements or other future events. These forward-looking statements generally are identified by words such as "anticipate," "believe," "expect," "may," "could," "will," "potential," "intend," "estimate," "should," "plan," "predict," or the negative or other variations of such statements, reflect our management's current beliefs and assumptions and are based on the information currently available to our management. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual results or developments to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of Lakeshore's securities; (ii) the risk that the transaction may not be completed by Lakeshore's business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Lakeshore; (iii) the failure to satisfy the conditions to the consummation of the transaction, including the approval of the business combination agreement by the stockholders of Lakeshore, the satisfaction of the minimum cash amount following any redemptions by Lakeshore's public stockholders and the receipt of certain governmental and regulatory approvals; (iv) the lack of a third-party valuation in determining whether or not to pursue the proposed transaction; (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; (vi) the effect of the announcement or pendency of the transaction on Nature's Miracle's business relationships, operating results and business generally; (vii) risks that the proposed transaction disrupts current plans and operations of Nature's Miracle; (viii) the outcome of any legal proceedings that may be instituted against Nature's Miracle or Lakeshore related to the business combination agreement or the proposed transaction; (ix) the ability to maintain the listing of Lakeshore's securities on a national securities exchange; (x) changes in the competitive industries in which Nature's Miracle operates, variations in operating performance across competitors, changes in laws and regulations affecting Nature's Miracle's business and changes in the combined capital structure; (xi) the ability to implement business plans, forecasts and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; (xii) the risk of downturns in the market and Nature's Miracle's industry including, but not limited to, as a result of the COVID-19 pandemic; (xiii) costs related to the transaction and the failure to realize anticipated benefits of the transaction or to realize estimated pro forma results and underlying assumptions, including with respect to estimated stockholder redemptions; (xiv) risks and uncertainties related to Nature's Miracle's business, including, but not limited to risks relating to the uncertainty of the projected financial information with respect to Nature's Miracle; risks related to Nature's Miracle's limited operating history, the roll-out of Nature's Miracle's business and the timing of expected business milestones; Nature's Miracle's ability to implement its business plan and scale its business; Nature's Miracle's ability to develop products and technologies that are more effective or commercially attractive than competitors' products;; risks relating to Nature's Miracle's being unable to renew the leases of their facilities and warehouses; Nature's Miracle's ability to grow the size of its organization and management in response of the increase of sales and marketing infrastructure; risks relating to potential tariffs or a global trade war that could increase the cost of Nature's Miracle's products; risks relating to product liability lawsuits that could be brought against Nature's Miracle;; Nature's Miracle's ability to formulate, implement and modify as necessary effective sales, marketing, and strategic initiatives to drive revenue growth; Nature's Miracle's ability to expand internationally; acceptance by the marketplace of the products and services that Nature's Miracle markets; and government regulations and Nature's Miracle's ability to obtain applicable regulatory approvals and comply with government regulations. The foregoing list of factors is not exclusive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of proxy statement, when available, and other documents filed by Lakeshore from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and neither Nature's Miracle nor Lakeshore assume any obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements. Neither Lakeshore nor Nature's Miracle gives any assurance that either Lakeshore or Nature's Miracle, or the combined company, will achieve its expectations.
Contacts
George Yutuc
Chief Financial Officer
George.Yutuc@nature-miracle.com
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
NMHI@mzgroup.us
