1812 Brewing Company, Inc. Reduces Authorized Shares by 50%

Rhea-AI Summary

1812 BREWING COMPANY (OTC Pink: KEGS) announced a reduction of its authorized shares by 10 billion, or 50%, effective March 31, 2022. This decision, approved by Florida’s Department of State, aims to enhance the company’s cost of capital and restructure its balance sheet. Chairman and CEO Tom Scozzafava emphasized that this step reflects a strategic move to avoid the unnecessary issuance of shares. KEGS continues to focus on addressing its convertible debentures as part of ongoing financial improvements.

Positive

• Reduction of authorized shares by 10 billion enhances capital structure.
• Commitment to repaying or restructuring convertible debentures indicates financial prudence.

Negative

• None.

Company has reduced Authorized Shares by 10 billion effective March 31st

Watertown, NY, June 22, 2022 (GLOBE NEWSWIRE) -- 1812 BREWING COMPANY, INC. (OTC Pink: KEGS) (the "Company" or “KEGS”) is pleased to announce that is has received correspondence from Florida’s Department of State that the Company’s Articles of Amendment to its Articles of Incorporation reducing the Company’s authorized shares by ten (10) billion shares or 50% was processed on April 20, 2022. 

“As previously stated, it was hard to imagine a scenario wherein the Company would need to issue 20 billion shares, and to have the Authorized Shares at that level was counterproductive to our ongoing efforts to reduce the Company’s overall cost of capital,” stated Chairman and CEO Tom Scozzafava. He continued, “This is just one step in KEGS’ ongoing effort to clean up its balance sheet and share structure, and it will not be our last.  We have previously stated that we are looking to repay or restructure all of KEGS “floorless” convertible debentures, and from a capital structure perspective that is what we are focused on moving forward.”

The Company’s reduction in Authorized Shares has an effective date of March 31, 2022.  The Company’s transfer agent has adjusted the Company’s records to reflect the reduction and has reported the new Authorized Shares number to OTC Markets’ issuer services division.

About 1812 Brewing Company (“KEGS or the “Company”):

KEGS is an operator of and investor in companies in the craft beer industry.  The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level.  KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution footprint expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation.  The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers. The Company seeks to be an “incubator” of growth for its holdings in the industry.  

The Company’s current holding, 1812 Brewing Co., produces award-winning beers such as War of 1812 Amber Ale (“1812 Amber Ale”), 1812 Light, Hazy Oasis Pale Ale, Thousand Islands IPA, Malicious Intent XX IPA, Route 11 Lager, Railroad Red Ale, Helles Bells Pilsner, St. Stephens Stout, Third Rail Porter, Featherhammer Maibock.

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Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

Contact: contact@1812ale.com

Attachment

• $KEGS - 1812 Brewing Co., produces award-winning beers such as War of 1812 Amber Ale (“1812 Amber Ale”)

FAQ

What is the significance of KEGS reducing its authorized shares?

The reduction of authorized shares by KEGS is aimed at improving its cost of capital and restructuring its financial position.

When did KEGS reduce its authorized shares?

KEGS reduced its authorized shares effective March 31, 2022.

How many authorized shares has KEGS reduced?

KEGS has reduced its authorized shares by 10 billion, which represents a 50% decrease.

What does the reduction of authorized shares mean for KEGS investors?

The reduction may indicate a more stable capital structure, potentially benefiting investors by decreasing share dilution.

What are KEGS's future financial plans following the share reduction?

KEGS plans to repay or restructure its convertible debentures as part of its ongoing financial improvements.