1812 Brewing Company Addresses Outstanding Convertible Debentures
Share appreciation is key to Company’s operational and financial goals
WATERTOWN, NY / ACCESSWIRE / January 5, 2023 / 1812 BREWING COMPANY, INC. (OTC PINK:KEGS) (the “Company” or “KEGS”) recently announced that its Chairman and CEO Tom Scozzafava had exchanged his shares of common stock for a Company note, and 3.4 billion shares of common stock were returned to the transfer agent and taken back into the Company’s treasury resulting in a net decrease of outstanding shares by approximately 167 million shares over the 12 months in 2022.
Chairman and CEO Thomas Scozzafava expounded on the rationale for the share retirement: “To achieve the Company’s overarching goals in the long term, it is imperative that the Company gain credibility with vendors, creditors, investors and with its peers in the industry. In particular,” Mr. Scozzafava continued, “a strong and generally upwardly trending share price makes the Company a far more attractive partner for an investment into or acquisition of another brewery. The stronger the stock, the stronger it is as potential currency for acquisition purposes, which we have outlined many times is a crucial part of KEGS growth strategy.”
Mr. Scozzafava stated, “Similar to the share retirement, it is in this context, and it is with this intent and purpose that the Company is seeking a mutually beneficial resolution to extinguish the $13.6 million of convertible debentures. Management had previously believed it had essentially brokered a deal between the debt holders and a third party, which was approved by a federal court. However, it appears unlikely that this transaction will be consummated. Therefore, I have had subsequent discussions with each of the debt holders, and they have tentatively agreed to continue to waive any accruing interest as well as to abstain from any conversions until the market value of the Company exceeds $100 million. It should be noted that neither debt holder has converted into common stock in over ten years, nor have they indicated an immediate desire to do so regardless of price.”
Finally, Mr. Scozzafava concluded, “it is not in the Company’s current best interest to issue additional shares at today’s share prices and market value. Ideally, the Company will reserve any issuances for mainly acquisitions and do so at valuations that are well above today’s.
I look forward to updating you in 2023 as 1812 Brewing Company moves ahead.”
About 1812 Brewing Company (“KEGS or the “Company”):
KEGS is an operator of and investor in companies in the craft beer industry. The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level. KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution footprint expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation. The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers. The Company seeks to be an “incubator” of growth for its holdings in the industry.
The Company’s current holding, 1812 Brewing Co., produces award-winning beers such as War of 1812 Amber Ale (“1812 Amber Ale”), 1812 Light, Hazy Oasis Pale Ale, Thousand Islands IPA, Malicious Intent XX IPA, Route 11 Lager, Railroad Red Ale, Helles Bells Pilsner, St. Stephens Stout, Third Rail Porter, Featherhammer Maibock.
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Contact Name: Tom Scozzafava
Contact Phone Number: 315-788-1812
Contact Email Address: email@example.com
Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.
SOURCE: 1812 Brewing Company Inc.
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