SALT LAKE CITY, Aug. 20, 2010 (GLOBE NEWSWIRE) -- Pursuant to the 8K filing by Sport Endurance, Inc. (OTCBB:SENZ), the Company announced today that it has entered into a letter of intent to acquire S&T Distributors, a Company currently generating in excess of $2,000,000 in annual revenues, with NOI of approximately 30% from its primary business of distributing food and beverage products throughout the Southwest.
The S&T revenues will up stream to Sport Endurance, and will be reflected in the annual revenues of the Company.
Robert Timothy, President of Sport Endurance, was quoted as saying, "We have been in discussions with S&T for several weeks, and are pleased to announce that we have entered into a formal Letter of Intent to acquire the Company. S&T has a built in distribution network of retail customers throughout the Southwest, which is a natural distribution source for Sport Endurance, and its line of Liquid Gel Products. In addition to the distribution channels that we will acquire, the Company itself is extremely profitable and well managed."
S&T currently distributes its products to over 1000 stores, throughout the Southwest, and will immediately begin to distribute the Sport Endurance line of Liquid Gel Caps.
The purchase price of S&T will be $2,100,000, payable $800,000 in cash over 18 months, at 6% interest, per annum. In addition, the Company will pay $1,300,000 in the form of restricted common shares at an agreed upon valuation price of .50 per share. The Company will therefore issue an additional 2,600,000 restricted common shares. Final closing documents are currently being prepared by counsel for the parties. The Company has filed an 8K announcing the acquisition.
Keith Stacks, President of S&T Distributors, stated, "We believe that the Sport Endurance Liquid Gel Cap line is the rational next evolution in the growing energy product market. It just makes a lot of practical sense in terms of its effectiveness, compact size, zero taste, and direct delivery system, that we agreed to sell our company to Sport Endurance in exchange for an equity position in a Company that we believe will be a leader in the energy products and health supplement field. With our distribution channels, and revolutionary products in the Liquid Gel Cap line, we believe our decision is the right one."
The Board of Directors has agreed to convene, on Monday August 23, 2010 to discuss and consider the impact of the acquisition on the Company and its shareholders.
About Sport Endurance
Sport Endurance Liquid Gel Cap products, including its 8 Hour Energy Liquid Gel Caps, Liquid Creatine Liquid Gel Caps, and natural Sleep Aid Liquid Gel Caps, represent a revolution in dietary supplements. The Company is among the first in the exciting Liquid Gel Cap field.
Safe Harbor Disclaimer
This material includes forward-looking statements based on management's Current reasonable business expectations. In this document, the words "can," "anticipates," "believes" and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities Act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future.