1812 Brewing Company, Inc. To Reduce Authorized Shares

Rhea-AI Summary

1812 Brewing Company (OTC Pink: KEGS) announced a 50% reduction in its authorized shares, dropping from approximately 20 billion to 10 billion. This strategic move aims to enhance the company’s cost of capital efficiency and improve market perception. Chairman Tom Scozzafava emphasized that having such a high share count could be detrimental, and if operational progress continues, a further 50% reduction may follow. The changes are pending shareholder and board approval, along with filing acceptance in Florida.

Positive

• Reduction of authorized shares by 50% from 20 billion to 10 billion, potentially improving perception and cost of capital.
• Possibility of an additional 50% reduction if operations progress positively.

Negative

• None.

Company shall reduce Authorized Shares by 50% - may include subsequent reduction

Watertown, NY, April 04, 2022 (GLOBE NEWSWIRE) -- 1812 BREWING COMPANY, INC. (OTC Pink: KEGS) (the "Company") is pleased to announce that it shall reduce the Company’s authorized shares by 50%.  “It’s hard to imagine a scenario wherein the Company would need to issue 20 billion shares, and to have the Authorized Shares at that level may even be counterproductive to our ongoing efforts to reduce the Company’s overall cost of capital” stated Chairman and CEO Tom Scozzafava.  He continued, “This is a case where perception can create the reality.  If it is perceived that that many shares must be issued to fund your company, then that many shares may just, in fact, be needed.  And that certainly is not our intent.”

The Company’s current Authorized Shares are approximately 20 billion, the move would decrease that to approximately 10 billion.  Finally, Mr. Scozzafava stated, “and if operations continue to progress as they have been, an additional 50% decrease from there is likely.”  The Authorized Share reduction is subject to shareholder and board resolutions and an accepted filing with the State of Florida. 

About 1812 Brewing Company:

1812 Brewing Company is both an investment and operating company focused on the beverage and hospitality industries. Returns are intended to be in the form of revenue growth of companies in its core holdings as well as the eventual share appreciation and dispossession of those equity stakes in its investments. For more updates follow us on Facebook, Twitter and Instagram.

https://www.facebook.com/SacketsHarborBrewingCompany/

https://www.instagram.com/1812brewingco/

https://twitter.com/1812Brewing

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

Investor Relations:
Peter Nicosia
President, Bull In Advantage, LLC
Phone: (585) 703-6565
Email: bullinadvantage@aol.com

FAQ

What is the recent share reduction announcement by 1812 Brewing Company (KEGS)?

1812 Brewing Company announced a 50% reduction in its authorized shares, decreasing from approximately 20 billion to 10 billion.

Why is 1812 Brewing Company reducing its authorized shares?

The company aims to improve its cost of capital and enhance market perception.

What could happen if operations continue to progress for KEGS?

If operations improve, an additional 50% reduction in authorized shares may be implemented.

When will the share reduction take effect for 1812 Brewing Company?

The reduction is subject to shareholder and board resolutions as well as acceptance of a filing with the State of Florida.