Cardinal Capital Management Inc. Funds XStream Beverage Group Inc.; Investment Services Firm Incubates Alternative Beverage Company.Business Editors BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 29, 2002 A new player entered the alternative or "New Age" beverage market this week as Cardinal Capital Management Inc. (www.cardinalcapital.net), the venerable Miami-based financial services and investment banking firm, brought XStream Beverage Group Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :XSBG) into its portfolio. The incubator relationship is a first for Cardinal, though the firm has long given private investors access to public offering shares. Cardinal has signed a firm commitment letter to provide Xstream Beverage with funding of $10 million, including $3 million in equity financing and $7 million in a secondary offering. "XStream is an attractive investment opportunity for several reasons," explained Hershel F. Smith, Chairman of Cardinal Capital. "The "New Age" beverage arena is a rapidly growing sector with a broad base of products. XStream has chosen to focus only on the largest and most rapidly growing segments of the market, with a solid business model of acquiring successful brands, which is an ideal fit for their roll-up strategy. We also liked the fact that XStream is a traditional bricks-and-mortar company, as Cardinal Capital has no plans to incubate Internet-only or technology-based companies." XStream Beverage Group plans to acquire small to medium "New Age" beverage companies and ready-to-drink energy and sports drinks and bottled water - the highest-growth areas of a booming sector. In fact, the latest figures from Beverage Marketing Corporation show that after tripling in volume during the 1990s, New Age beverages accounted for 13% of the soft drink market last year with more than $7 billion in sales. Industry analysts expect the alternative beverage market to continue its upward trend, predicting growth of 8% to 10% in the coming years. In addition to acquiring existing brands, XStream plans on utilizing global distributor networks via acquired companies. Products will be driven by customer demand. For the next year, XStream will look to Cardinal Capital for assistance with capital resource strategies, financial advice, obtaining acquisitions and mergers, and related activities. "We are excited at the opportunity to benefit from Cardinal Capital's business development expertise," said Ted Farnsworth, Chairman and Founder of XStream Beverage Group Inc. "Cardinal Capital is a leader in the South Florida investment market and I believe our successful partnership will help take XStream Beverage to the next level." About XStream Beverage Group, Inc. Established in 2001 by Ted Farnsworth, XStream Beverage Group Inc. is positioned to become one of the leaders in the New Age segment of the beverage industry. The company is a public entity trading on the OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). , ticker symbol XSBG. About Cardinal Capital Management,Inc. Cardinal Capital Management, Inc. is a full-service broker dealer and registered investment advisor Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in headquartered in Miami, Florida. With clients across the U.S., Latin America and Europe, Cardinal Capital is a member of the National Association of Securities Dealers National Association of Securities Dealers (NASD) Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). ), Municipal Securities Rulemaking Board The Municipal Securities Rulemaking Board, often referred to simply as the MSRB, makes rules regulating broker-dealers and banks that deal in municipal bonds, municipal notes, and other municipal securities in the United States. (MSRB MSRB See Municipal Securities Rulemaking Board (MSRB). ), The Securities Investors Protection Corp. (SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. ), Securities Industry Association (SIA Sia (sī`ə) or Siaha (sī`əhə), in the Bible, family returned from the Exile. SIA - Serial Interface Adaptor ), and Florida Securities Dealers Association (FSDA FSDA Florida Skin Divers Association (now Florida Scuba Divers Association) FSDA Financial Services Development Act 2001 FSDA Friends of San Diego Architecture FSDA Florida Stamp Dealers Association ). Cardinal Capital launched US Labs, a company that was recently sold for $85 million. Founded in 1989, the firm has a reputation for highly personalized results-driven service. Forward Looking Statements This press release includes forward-looking statements within the meaning of 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. 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 fluctuations in costs, changes in consumer preferences and other items described in the Company's Securities and Exchange Commission filings and the Company undertakes no obligation to update the forward-looking statements. |
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