Xstream Beverage (NASDAQ:XSBG)
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XStream Beverage Group, Inc. Acquires Mid-Atlantic Beverage
Distributor
Acquisition of Atlantic Beverage Company Will More Than Double Company's
Revenues -- Expands Beverage Network Concept
FORT LAUDERDALE, Fla., July 19 /PRNewswire-FirstCall/ -- XStream Beverage
Group, Inc. (OTC:XSBV) (BULLETIN BOARD: XSBV) a rapidly growing player in the
national beverage industry, today announced it has completed, through its
wholly owned subsidiary, Beverage Network of Maryland, Inc. the acquisition of
substantially all of the assets and certain liabilities of Master Distributors
Inc. (dba Atlantic Beverage Company.), a mid-Atlantic distributor of non-
alcoholic beverages serving Washington, D.C., Virginia and Maryland.
With un-audited 2003 revenues in excess of $7 million and un-audited sales of
$3.9 million for the six months ended June 30, 2004, the addition will more
than double XStream's revenues, which recently reported un-audited record sales
of $1.9 million for the six-months ended June 30, 2004.
Atlantic Beverage, which operates under the corporate entity of Master
Distributors, Inc., has a leased warehouse in Jessup, Maryland just outside of
Baltimore. The company, which has 31 employees, distributes such high profile
brands as Welch's, Clearly Canadian, Hansen's, Fiji water, Tazo Tea and certain
non-alcoholic products produced by Guinness. Beverage Network of Maryland will
immediately distribute XStream's proprietary energy drink, Yohimbe, while its
Maui Juice products and the Squeeze soda brand will be distributed in the near
future.
"Atlantic Beverage is one of the premier, independent beverage distributors on
the east coast and represents the ideal profile of the type of distributors we
want to acquire in key markets around the country while concurrently
introducing our own proprietary brands though those distributors," said XStream
Beverage Group CEO Jerry Pearring. "Owner Morris Stodard is a beverage industry
veteran who has truly embraced our Beverage Network concept. His experience and
expertise will be a valued addition to our senior management team."
Atlantic Beverage Company will conduct business as Beverage Network of
Maryland, Inc. expanding the Company's Beverage Network concept along the east
coast. The Company recently acquired Ayer Beverage in Massachusetts giving
XStream Beverage contiguous geographic coverage from Boston through the entire
state of Connecticut by joining forces with Beverage Network of Connecticut,
XStream's previous New England acquisition. XStream also owns and operates
Beverage Network of South Florida that covers Miami-Dade, Broward and Palm
Beach Counties.
Pearring said that Stodard would continue as general manager of Beverage
Network of Maryland, Inc. through the end of 2004 and has been appointed to the
Advisory Board of XStream Beverage Group, Inc. In addition to his role on the
Advisory Board, Stodard will take on additional duties with XStream beginning
in January 2005.
"I've been in the beverage industry for more than four decades and I'm very
impressed with XStream Beverage Group's growth strategies," said Stodard. "With
the additional resources provided by XStream we can take an even more
aggressive approach to our sales and marketing to expand our customer base."
The consideration and terms of the acquisition were 1,923,077 shares of XSBV
restricted common stock, $1,219,321 in cash delivered at closing, a promissory
note for $2,000,000 payable in 60 equal monthly payments and bearing 6%
interest and a separate $250,000 payment to be made in 12 equal weekly
installments.
The $1,219,321 cash portion of the acquisition was provided by Laurus Master
Funds, Ltd. ("Laurus Funds") through their May 14, 2004 financing agreement
with XStream Beverage Group. This arrangement with Laurus Funds for a total of
$3 million in financing was made possible through an investment banking
relationship with H.C. Wainwright & Co., Inc.
XStream Beverage Brands
As part of its brand acquisition strategy, XStream recently acquired the Maui
Juice Company and the historic Squeeze soda brand, its first entry in the
"retro" gourmet soda category. The Company has begun the expansion of the Maui
brand on the Island of Hawaii and anticipates bringing the product to the
mainland within the next three months. Squeeze is currently being reformulated
and repackaged and the Company anticipates introducing the product before the
end of this year.
Just over a year ago, the Company introduced its proprietary energy drink,
Yohimbe. Since its introduction in March 2003, sales of the product have grown
consistently in both on-premise clubs and through its company owned
distributors.
About XStream Beverage Group, Inc.
XStream Beverage Group, Inc., http://www.xbev.com/, is a beverage brand owner
and distributor and is rapidly becoming a key player in the new age beverage
category. The company plans to continue acquiring small- to medium- sized
beverage distributors, developing brands under its own label or through
acquisition and leveraging those brands through its current and future
distribution channels. The company is a fully reporting, public entity trading
on the OTC Bulletin Board, ticker symbol XSBV.
This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements of the Company to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include
failure to complete successfully the development of new or enhanced products,
the Company's future capital needs, the success of competitive products,
fluctuations in costs, changes in consumer preferences and other items
described in the Company's Securities and Exchange Commission filings. The
Company undertakes no obligation to update any statements in this press
release.
For further information, contact:
Peter Nasca
Peter Nasca Associates, Inc.
Chicago: 312-421-0723
Miami: 305-937-1711
For Investor Relations
Bob Giordano
212-495-0200 extension 10
DATASOURCE: XStream Beverage Group, Inc.
CONTACT: Peter Nasca of Peter Nasca Associates, Inc., +1-312-421-0723 or
+1-305-937-1711, or , for XStream Beverage Group, Inc.; or
investor relations, Bob Giordano for XStream Beverage Group, Inc.,
+1-212-495-0200, ext. 10
Web site: http://www.xbev.com/