American Water Star (AMEX:AMW)
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From Jun 2019 to Jun 2024
American Water Star Inc. (AMEX: AMW), today announced
that the company has sent a proposal to Laurus Master Fund in an
attempt to settle the current indebtedness. By letter dated Nov. 4,
2005, Laurus notified the company that certain defaults have occurred
and are continuing under the Forbearance Agreement and demand for
payment was made in the amount of $6,694,875.93. Subsequently, the
company received from the Trustee, on behalf of Laurus, Notice of
Trustee's Sale and Statement of Breach of Non-Performance and Notice
of Election to Sell the Company's property and fixtures at 3910 East
Weir Avenue, Phoenix, Arizona, at an auction to be held on March 2,
2006.
The terms of the proposed settlement submitted by the company to
Laurus are as follows: (1) $5,000,000 cash which will be wired
immediately upon closing of the refinancing of the Phoenix property;
(2) existing Laurus warrants to remain in effect and priced as-is; and
(3) the balance of the fees and interest in the approximate amount of
$1,600,000 will be repaid in either options or warrants to purchase
the company's common stock at a price per share to be determined on
the date of the wire transfer.
About American Water Star Inc.
American Water Star Inc. ("AMW") is a publicly traded company and
is engaged in the beverage bottling industry. Its product brands are
licensed and developed in-house, and bottled in strategic locations
throughout the United States. AMW's beverage products are sold by the
truckload, principally to distributors, who sell to retail stores,
corner grocery stores, convenience stores, schools and other outlets.
At AMW, we believe our great-tasting, new zero-sugar, zero-calorie
flavored water beverages have positioned us to capture a large share
of the market for healthy flavored waters. Our product line consists
of three branded beverages: Geyser Sport; Geyser Fruit; and Geyser
Fruta. Geyser Sport is a sugar-free, calorie-free, carb-free fruit
flavored beverage fortified with vitamins and calcium, offered in
eight different fruit flavors. Geyser Fruit is a non-carbonated water
with a low sugar content, also offered in eight different flavors.
Geyser Fruta is targeted to the Hispanic market and includes authentic
Latin-flavored beverages.
Forward-Looking Statements
This press release may contain statements that constitute
"forward-looking statements" as defined under U.S. federal securities
laws. Generally, the words "believe," "expect," "intend," "estimate,"
"anticipate," "establish," "project" and similar expressions identify
forward-looking statements, which generally are not historical in
nature. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. These risks include, but are not limited to, acceptance
of the company's proposal by Laurus; the possibility of foreclosure
upon our Phoenix plant and equipment; our ability to meet our working
capital needs to continue operations; management's ability to seek
additional funding or potential merger and acquisition candidates; any
additional work that may be required for our financial statement
preparation of our 2005 third quarter report; the actual amount of
annual sales of AMW water; changes in economic conditions; changes in
the non-alcoholic beverages business environment, including actions of
competitors and changes in consumer preferences; our ability to
capture market share; the effectiveness of our advertising and
marketing programs; fluctuations in the cost and availability of raw
materials or necessary services; our ability to avoid production
output disruptions; our ability to achieve earnings goals; regulatory
and legal changes; our ability to penetrate developing and emerging
markets; litigation uncertainties; and other risks discussed in our
filings with the SEC, including our Annual Report on Form 10-KSB,
Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K,
which reports are available from the SEC. You should not place undue
reliance on forward-looking statements, which speak only as of the
date they are made. We undertake no obligation to publicly update or
revise any forward-looking statements to reflect current events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.