JB Foods’ wholly-owned subsidiary, JB Cocoa EBNJ LLC, has proposed to dispose of its property in New Jersey in the US for US$18 million ($24.3 million).
JB Cocoa EBNJ, on Oct 27, entered into a sale and purchase agreement (SPA) with an independent third party buyer, Evox Holdings.
Under the agreement, Evox will purchase the property located at 9 Cotters Lane, East Brunswick, New Jersey.
See: JB Foods FY2020 earnings down 26.3% on higher costs
The property was purchased in 2014 by JB Foods with the intention to develop it into a factory building for the purposes of its business and operations.
While finalising plans for the development of the property, it was leased out to third party tenants.
According to JB Foods, the group was approached by Evox.
After considering the current uncertain market conditions and change in the group’s supply chain strategy, JB Foods deemed it to be in their best interests to sell the property.
The sale will provide additional capital to the group for its working capital requirements and other expansion plans.
Shares in JB Foods closed flat at 54 cents on Oct 27.
Photo: Stock photo
