GMS Capital forays into cosmetics market; to commercialise Nacara brand

Canada-based GMS Capital Corp has announced its entry into the cosmetics industry following a transaction with 8012415 Canada, a wholly owned subsidiary of Nacara Montreal.

The firm has also acquired exclusive rights to globally commercialize all the current and future cosmetic products under the Nacara brand along with all its derivatives products, except for Finland, Sweden and Russia.

The license agreement has also prompted the firm to commit for an achievement gross revenues target of $6m in the first year, $15m in the second year and $25m in the following year.

The firm under its new business strategy has planned to change Nacara Montreal’s corporate name to Nacara Corp and has appointed Caroline Coulombe as its new CEO.

GMS Capital Corp CEO Caroline Coulombe said that Nacara’s products will enter into the market and begin with a stronger presence in the US market.

Under the agreement, GMS Capital Corp has also acquired an option to purchase 10,000,000 Class D shares of 8012415 Canada which represents 99.99% of all the shares in circulation of the subsidiary owning all business assets of Nacara.

The company said the option exercise price for the 10,000,000 Class D shares of 8012415 Canada is 729,929 common shares of the company. The parties have valued the 10,000,000 Class D shares at C$10,000,000, or approximately C$13.70 for each GMS Capital Corp. common share issuable upon exercise of the option.

Nacara Montreal offers different types of makeup and hair care products to suit the all types of skin.

Image: The firm under its new business strategy has planned to change Nacara Montreal’s corporate name to Nacara Corp

Photo: Nacara Montreal