BEVsystems International and Alfresh Beverages Canada Terminate Proposed Merger.Business Editors/Food & Beverage Writers MIAMI--(BUSINESS WIRE)--Oct. 30, 2002 BEVsystems International, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BEVS BEVS Baculovirus Expression Vector System BEVS Build and Enhance Value Solutions ), a leading producer of premium beverage products, today announced that it will not proceed with the previously proposed merger with Alfresh Beverages Canada. During the due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. of Alfresh Beverages Canada by BEVsystems' management and their financial advisors, the financial statements and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of Alfresh were reviewed. In the course of this review, BEVsystems discovered that Alfresh's debt exceeded $25 million USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. with various interest rates approaching credit card levels. BEVsystems informed Alfresh that the merger would require restructuring of their debt. To proceed without restructuring the Alfresh debt would place a severe strain on BEVsystems' cash flow. Said G. Robert Tatum, BEVsystems CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "With Alfresh's current debt structure, it is not in the best interest of BEVsystems shareholders to proceed with the proposed merger with Alfresh." The Alfresh Board has advised BEVsystems that the Letter of Intent to Merge has been terminated. The company had also previously announced a distribution agreement between Alfresh Beverages Canada and BEVsystems, referred to in a Press Release dated August 7, 2002 and distributed by BEVsystems. This distribution agreement has also been terminated for the present time. It should be noted that the $7.5 million funding committed by institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. of J.P. Carey Securities Inc., an Atlanta-based asset management firm, is not affected by the termination of either the proposed merger or the afore-mentioned distribution agreement between Alfresh and BEVsystems. At this time, BEVsystems remains focused on its business strategy to continue its search for additional acquisition or merger candidates and to grow the distribution and availability of its beverage products. About BEVsystems International Inc. Miami, Florida-based BEVsystems International Inc. (OTCBB:BEVS) is a fast-growing leader in the premium beverage industry. With sales in 22 countries, the success of its flagship Life02 SuperOxygenated Water brand, infused with up to 1,500 percent more oxygen via patented process and technology innovations, underscores BEVsystems' commitment to sales, marketing, and innovation to deliver superior quality beverage products. A recently published peer review study in The European Journal European Journal is a weekly Deutsche Welle (DW) news program produced in English. It is broadcast from Brussels, Belgium and primarily covers political and economic developments across the European Union and the rest of Europe, as well as issues of particular concern to of Medical Research details the medical benefits of oxygen-enriched water. For more information, visit http://www.bevsystems.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement" Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions. |
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