Flow Beverage Corp. Completes Unsecured Debenture Amendments

Rhea-AI Summary

Flow Beverage Corp. (OTCQX: FLWBF) announced the successful amendment of $9,476,000 in unsecured debentures due on February 28, 2022. The company issued 8,536,936 Series C warrants with an exercise price of $1.11, expiring on February 28, 2025. This extension allows Flow to allocate financial resources towards brand growth and activation, enhancing product velocity and distribution. Flow is recognized for its environmentally sustainable bottled water solutions and operates across over 24,650 stores in North America.

Positive

• Company issued 8,536,936 Series C warrants, enhancing potential capital.
• Extension of debenture maturity allows for reinvestment in brand growth.
• Flow has a strong presence with products available in over 24,650 stores.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (the “Company” or “Flow”), is pleased to announce that it has completed the necessary amendments with respect to Flow’s $9,476,000 of unsecured debentures that matured on February 28, 2022 (the "Debentures") and, accordingly, Flow has issued 8,536,936 Series C warrants, with an exercise price of $1.11 and expiring February 28, 2025. The amendments to the Debentures were previously announced on February 8, 2022.

“With the extension of the maturity date for these Debentures, Flow is able to direct its financial resources towards driving growth of Flow branded products. Consistent with our strategic framework, in the upcoming months investments in the Flow brand will be focused on brand activation to increase velocity and expanding distribution,” said Maurizio Patarnello, Chief Executive Officer of Flow.

About Flow

Flow is one of the fastest-growing premium water companies in North America. Founded in 2014, Flow’s mission since day one has been to reduce environmental impacts by providing sustainably sourced naturally alkaline spring water in a sustainable, 100% recyclable and up to 75% renewable, plant-based pack. Today, the brand is B-Corp Certified with a best-in-class score of 126.5, offering a diversified line of health and wellness-oriented beverage products: original naturally alkaline spring water, award-winning organic flavours, and collagen-infused flavours in sizes ranging from 330-ml to 1-litre. All products contain naturally occurring electrolytes and essential minerals and support Flow’s overarching purpose to “bring wellness to the world through the positive power of water.” Flow beverage products are available online at flowhydration.com and are sold at over 24,650 stores across North America.

For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com.

Cautionary Statement

This press release may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking statements include, but are not limited to, information with respect to our objectives and the strategies for achieving those objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements are typically identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, although not all forward-looking statements contain these words. Forward-looking statements are provided for the purposes of assisting the reader in understanding Flow and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-looking statements are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. Those risks and uncertainties include the following: impact and spread of COVID-19; ability to achieve and manage growth; failure to expand sales capabilities; changes in consumer preferences; criticism of packaged water; maintain brand image and product quality; constrained or unavailable spring water sources; inability to package products; increased competition; accurately estimating demand; maintaining relationships with distributors and vendors; changing retail landscape; incorrect product design or development; product information misrepresentation; revenues derived entirely from packaged beverages; increases in costs or shortages of materials; fluctuation of quarterly operating results; no assurance of profitability; fluctuations in foreign currency; changes in government regulation; contamination or recalls of ingredients or end products; loss of intellectual property rights; litigation; future tax rates; catastrophic events; climate change; seasonal business; dependence on key information systems and third-party service providers; ability to securely maintain confidential information; maintaining and upgrading information technology systems; conflict of interest; dual class share structure; potential volatility of share price; no assurance of active market for shares; lack of dividends; global financial condition; publication of inaccurate or unfavourable research and reports; operating history; and management and conflict of interests. Consequently, all of the forward-looking statements contained herein are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition, or results of operation. Unless otherwise noted or the context otherwise indicates, the forward looking. statements contained herein are provided as of the date hereof, and we do not undertake to update or amend such forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220308006291/en/

Devan Pennell, Chief Financial Officer

1-844-356-9426

investors@flowhydration.com



US investors:

Lynne Collier

Lynne.collier@icrinc.com



Canadian investors:

Marc Charbin

investors@flowhydration.com



Media:

Natasha Koifman

nk@nkpr.net

Source: Flow Beverage Corp.

FAQ

What recent financial changes has Flow Beverage Corp. made?

Flow Beverage Corp. amended $9,476,000 in unsecured debentures and issued 8,536,936 Series C warrants.

When do the new Series C warrants for Flow Beverage Corp. expire?

The Series C warrants expire on February 28, 2025.

What is the exercise price of Flow Beverage Corp.'s Series C warrants?

The exercise price of the Series C warrants is $1.11.

How will the amendments to the debentures benefit Flow Beverage Corp.?

The amendments will allow Flow to focus on brand growth and expand its product distribution.

Where can Flow Beverage Corp.'s products be purchased?

Flow's products are available in over 24,650 stores across North America.