Betterware de Mexico Provides an Update on Promotora Forteza Investment

Rhea-AI Summary

Betterware de México S.A.B. de C.V. (NASDAQ: BWMX), a leading direct-to-consumer company in Mexico, announced the merger with Promotora Forteza, S.A. de C.V. on December 16, 2020, to comply with the Mexican Banking and Securities Commission's request. This merger allows Forteza's 17 individual investors to hold an equivalent number of Betterware shares, totaling 12,033,786. Betterware continues its operations unaffected, leveraging its distribution model with nearly 59,000 distributors and 1.2 million associates, achieving double-digit growth rates.

Positive

• Merger allows 17 Forteza shareholders to directly hold Betterware shares, enhancing shareholder engagement.
• Betterware maintains a robust growth trajectory with a 20% CAGR from 2003-2019.
• Strategic distribution model with nearly 59,000 distributors supports sustained market penetration.

Negative

• None.

GUADALAJARA, Mexico, Jan. 5, 2021 /PRNewswire/ -- Betterware de México S.A.B. de C.V. ("Betterware") (NASDAQ: BWMX), the leading direct-to-consumer company in Mexico that focuses on the home organization and solutions segment with a two-tier distribution model, today announced that on December 16, 2020, Promotora Forteza, S.A. de C.V. ("Forteza"), an investment vehicle with no other assets, liabilities or investments, merged with the Company.  This merger was agreed to between Forteza and Betterware to comply with the Mexican Banking and Securities Commission's (CNBV) request.  As a result of the merger, the 12,033,786 shares that Forteza was titleholder to on December 16, 2020 were distributed to the individual investors of Forteza, who now hold an equal number of Betterware shares.  This merger did not affect Betterware's operations or value.

Forteza, which was comprised of 17 individual investors, held shares in Betterware common stock since 2018.  These shareholders of Forteza received the same number of shares (12,033,786) representing Betterware's capital stock that Forteza was titleholder on December 16th, 2020. Currently, the individual investors can directly participate in Betterware´s capital stock.

Luis Campos, Betterware Chairman stated: "We are pleased to welcome the individual investors in Forteza as shareholders in Betterware.  These former shareholders of Forteza are long term investors who strongly believe in Betterware´s growth prospect, dividend income and business strategy."   

About Betterware de Mexico S.A.B. de C.V.
Founded in 1995, Betterware de Mexico is a leading direct-to-consumer selling company in Mexico, whose CAGR 2003-2019 was 20%. Focused on the home organization and solutions segment, Betterware's wide product portfolio includes home organization, kitchen preparation, food containers, smart furniture, technology and mobility, as well as other minor categories.

Supported by its top-class business intelligence and data analytics units, which provides daily monitoring of key metrics and product intelligence, Betterware has been able to achieve sustainable double-digit growth rates by successfully expanding its market penetration driven by its almost 59,000 distributors and 1.2 million associates network.

Its state-of-the-art infrastructure allows it to safely and timely deliver its products to every part of the country, backed by the strategic location of its distribution center.

Forward-Looking Statements
This  press  release  includes  certain  statements  that  are  not  historical  facts  but  are  forward-looking statements  for  purposes  of  the  safe  harbor  provisions  under  the  United  States  Private  Securities  Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe,"  "may,"  "will",  "estimate",  "continue",  "anticipate",  "intend",  "expect",  "should",  "would",  "plan", "predict", "potential", "seem", "seek," "future," "outlook", and similar expressions that predict or indicate  future  events  or  trends  or  that  are  not  statements  of  historical  matters.  The reader should understand that the results obtained may differ from the projections contained in this document, as past results in no way offer any guarantee of future performance. For this reason, the Company assumes no responsibility  for  any  indirect  factors  or  elements  beyond  its  control  that  might  occur  inside  Mexico  or  abroad and which might affect the outcome of these projections

View original content:http://www.prnewswire.com/news-releases/betterware-de-mexico-provides-an-update-on-promotora-forteza-investment-301200630.html

SOURCE Betterware de México, S.A.B. de C.V.

FAQ

What is the recent merger involving Betterware de México (BWMX)?

Betterware de México merged with Promotora Forteza on December 16, 2020, allowing Forteza's investors to directly hold Betterware shares.

How many shares were involved in the Betterware and Forteza merger?

A total of 12,033,786 shares were distributed to Forteza's individual investors as part of the merger.

What has been the growth rate of Betterware de México?

Betterware has achieved a compound annual growth rate (CAGR) of 20% between 2003 and 2019.

How does Betterware distribute its products?

Betterware utilizes a two-tier distribution model supported by nearly 59,000 distributors and 1.2 million associates.