Jamieson Wellness Inc, Canada's leading branded manufacturer of high-quality natural health products, announced on Friday that it has entered into a partnership with DCP Capital, an international private equity firm with a long-term track record of success in China and broader Asian markets.

DCP will purchase a minority interest in the company's Chinese operations and make a preferred share investment in Jamieson Wellness. In conjunction with these investments, DCP will subscribe for warrants to purchase a fixed number of common shares of the company.

The partnership with DCP will accelerate Jamieson's rapidly growing business in China and bring more high-quality vitamins, minerals and supplements to a broader base of Chinese consumers.

"This partnership with DCP is a significant next step for Jamieson in the world's second largest VMS market," said Mike Pilato, President and CEO of Jamieson Wellness. "In November, we announced the pending acquisition of the assets of our Chinese distributor and the expansion of our on the ground resources in China. DCP's deep experience in China complements our capabilities and will pave the way to strengthen and accelerate our market opportunities as we move to control the value chain and scale our business in this important and fast-growing market."

Pursuant to the proposed partnership transaction, DCP will contribute approximately $35 million in capital in exchange for a 33.3 percent share in the ownership structure of the company's Chinese operations. The partnership will be led by a board consisting of directors designated by the Company and DCP, commensurate with their respective ownership interest.

In support of Jamieson's global health and wellness strategy, DCP will subscribe for approximately $75 million of preferred shares in Jamieson Wellness. DCP has the option to require the company to redeem the preferred shares between the second and fifth anniversary of their purchase. In conjunction with the partnership transaction and the preferred share investment, DCP will subscribe for warrants to purchase 2,527,121 common shares of the Company at an exercise price equal to a 10 percent premium to the 20-day volume weighted average share price as of February 22, 2023, subject to adjustment pursuant to the rules of the Toronto Stock Exchange. The warrants are exercisable between the second and the fifth anniversary of the issue date.

"Working together with the Jamieson team, we are confident that our local expertise and operational capabilities will help accelerate the development of Jamieson in China and bring more high-quality health products to an expanded consumer base," said Hwan Chung, Managing Director of DCP Capital.

Closing of the partnership transaction is subject to the closing of the previously disclosed acquisition of certain assets from Jamieson's distribution partner in China and other customary closing conditions, including applicable regulatory approval.