SAN DIEGO, April 13, 2009 (GLOBE NEWSWIRE) -- Javo(r) Beverage Company, Inc. (OTCBB:JAVO), a leading provider of premium dispensable coffee and tea-based beverages to the food service industry, announced that it has completed a $23.0 million private debt offering pursuant to which the Company issued $22.5 million of 8-year senior subordinated 10% notes and 102.5 million shares of common stock. Net offering proceeds of $22.0 million after closing fees will initially be allocated to retire the remaining balance on the Company's 2006 senior convertible notes and associated warrants. Additionally, the Company anticipates using proceeds of the financing primarily to purchase beverage dispensers, contributing toward growing its base of Company and customer-owned dispenser placements by six to eight thousand in 2009. Further details of the offering are available in the Company's April 10, 2009 filing on Form 8-K.
Cody Ashwell, chief executive officer of Javo Beverage Company, said "In light of the current conditions in the capital markets, the completion of our offering is a strong vote of confidence in the Javo business model. While the offering provides the necessary liquidity to both retire our 2006 convertible debt and fuel ongoing customer expansion opportunities, it also allows for flexibility in the capital structure to grow well beyond 2009."
About Javo(r) Beverage Company, Inc.
Based in Vista, California, Javo(r) Beverage Company (OTCBB:JAVO) is an innovator and leader in the manufacture of premium coffee and tea-based dispensed beverages, drink mixes and flavor systems. The company has commercialized a proprietary brewing technology that yields fresh brewed coffees and teas that are flavorful, concentrated and stable, with broad applications in the food service, food manufacturing and beverage industries. For food service operators, Javo makes it possible to serve great tasting hot coffees and cold specialty coffee and tea beverages from convenient dispenser-based systems. Javo also assists food and beverage processors seeking authentic and robust coffee and tea flavors through its development and supply of customized ingredients for packaged foods and ready-to-drink beverages. The company supplies a growing list of national and international food service operations, specialty coffee retailers, restaurant chains and food manufacturers. For information about Javo Beverage Company, please visit www.javobeverage.com.
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Forward-looking statements
This release contains forward-looking statements made by or on behalf of Javo(r) Beverage Company, Inc. All statements that address operating performance that the Company expects will occur in the future, including statements relating to expected revenue growth, increases in installed dispensers or statements expressing general optimism about future operating results, are forward-looking statements. These forward-looking statements are based on management's current views and we cannot assure that anticipated results will be achieved. These statements are subject to numerous risks and uncertainties, including those set forth in the Company's risk factors contained in the Company's most recent annual report on Form 10-K and in subsequent quarterly reports on Form 10-Q, copies of which are available from the Company without charge and from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements and are encouraged to review the risk factors that could affect actual results. The Company disclaims any intent to update forward looking statements.