Canadian organic food producer GreenSpace Brands Inc. agreed to sell its Kiju juice brand under its Nothing But Nature Inc. business to Quebec-based juice and iced tea producer Zurban Beverages Inc. for C$8 million.

Zurban will pay an upfront cash consideration for the business of C$7.5 million and a revenue-based earnout of C$500,000, according to a May 21 announcement.

The transaction value represents approximately 1x net sales of C$8.3 million. Kiju accounts for approximately 10% of GreenSpace's revenue, and the divestment represents approximately 40% of the group's market capitalization as of May 17, the release also said.

GreenSpace will use the proceeds from the transaction for general working capital purposes and for the repayment of debt, which is estimated to be between C$13 million and C$15 million. This includes the vendor takeback note from the company's US$17.8 million acquisition of Galaxy Nutritional Foods Inc. in 2018.