Flow Beverage Secures $2 Million in Convertible Debt Expansion
Flow Beverage Corp. Secures $2 Million Funding
Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) is thrilled to share the successful closing of a $2 million secured convertible note with BeatBox Beverages, its valued co-packing partner in the alcohol beverage sector. This significant step not only demonstrates the strength of their partnership but also marks a new chapter in their collaborative journey towards innovation.
Strategic Financing for Growth
The secured convertible note presents a strategic opportunity for Flow Beverage Corp. to enhance its production capabilities. With this funding, Flow plans to add two new production lines at its Aurora facility. The funds will primarily cover leaseholds and necessary equipment, propelling Flow’s expansion while meeting the increasing demand for its products.
Significance of the Partnership with BeatBox
As noted by Nicholas Reichenbach, Founder and CEO of Flow, the partnership with BeatBox is pivotal. The increase in production capacity is essential as both companies scale their operations in the bustling North American beverage market. The notes will not only help advance their operational capabilities but will also contribute to a shared vision of sustainability.
Details of the Secured Convertible Note
The Note matures in 2029 and carries a 10% per annum interest rate, payable quarterly. It is convertible into subordinate voting shares at BeatBox’s discretion at a $1.00 per share price. If Flow achieves high trading prices within the next year, it can compel conversion, creating even more potential growth opportunities for its investors.
Production Capacity Expansion
The amended manufacturing agreement with BeatBox extends to six years, with projected revenue enhanced from $115 million to $213 million. This is a clear indicator of Flow's commitment to fulfilling market demand and growing its influence within the health and wellness beverage segment.
About Flow Beverage Corp.
Founded in 2014, Flow Beverage Corp. has rapidly established itself as a premier brand in the beverage industry, dedicated to sustainability. The company prides itself on delivering naturally sourced mineral spring water in eco-friendly packaging. Flow’s commitment to wellness is reflected in its diverse range of products, which include flavored options and sparkling mineral water, all enriched with electrolytes and essential minerals.
About BeatBox Beverages
BeatBox has gained traction as a vibrant brand in the alcohol industry, known for its fun flavors and community engagement. The brand was born out of a love for music and has evolved into a cultural icon, particularly among Millennial and Gen Z consumers. Its unique packaging and innovative marketing strategies represent the dynamism of today's beverage landscape.
Frequently Asked Questions
What is the purpose of the $2 million secured convertible note?
The funding aims to expand production capabilities at Flow’s Aurora facility, allowing the company to meet increasing demand.
How does the partnership with BeatBox impact Flow?
The partnership enables Flow to scale operations and innovate within the beverage industry, reinforcing their mutual commitment to sustainability.
What are the financial terms of the secured convertible note?
The note has a 10% interest rate, matures in 2029, and is convertible at BeatBox’s option into subordinate voting shares at $1.00 each.
What recent changes were made to Flow’s agreement with BeatBox?
The manufacturing agreement was extended from five to six years, increasing projected revenue significantly to accommodate growth.
How does Flow ensure its products are sustainable?
Flow focuses on sustainably sourced ingredients and eco-friendly packaging, aligning its operations with environmental stewardship principles.
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