Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation

Rhea-AI Summary

Kona Gold Beverages (KGKG) has initiated negotiations with its largest debt holder to purchase and remove the debt from its financial statements. This move aims to eliminate future debt conversions and strengthen the company's financial position. The company is also addressing production challenges for its HighDrate drinks, collaborating with new manufacturers to bring the product to market. Additionally, Kona Gold is in the process of changing its name to NuVibe, Inc., with legal work underway.

The company operates through subsidiaries Kona Gold , Covert , and Surge Distribution , offering a range of healthy energy drinks, Delta-8, THCa, THC-P, and Kratom products. Kona Gold is focused on expanding its market presence through strategic acquisitions.

Positive

• Initiated negotiations to purchase and remove largest debt, potentially improving financial position
• Successful initial production run of HighDrate drinks with positive feedback
• Actively collaborating with new manufacturers to address production challenges
• Name change to NuVibe, Inc. in progress, signaling new direction for the company

Negative

• Current manufacturer unable to meet large order demands for HighDrate drinks
• Delays in bringing HighDrate drinks to market due to production issues

The Company is seeking to tighten its share structure, negotiate debt payoffs, and limit stock conversions

MELBOURNE, Fla., July 17, 2024 /PRNewswire/ -- Kona Gold Beverages is pleased to announce that its management team has initiated discussions with its largest debt holder to negotiate the purchase and complete removal of the debt from the company's financial statements. This strategic move aims to eliminate the need for any future debt conversions, providing a stronger financial foundation for the company's growth and development.

The management team has conducted thorough research and data analysis, demonstrating that the past conversions and sales associated with its largest debt holder having yielded substantial returns. With this solid groundwork, Kona Gold Beverages is confident that a mutually beneficial agreement can be reached, enabling the company to retire the debt completely.

The Company's primary goal is to strengthen Kona Gold Beverages' financial position and pave the way for new investments and opportunities. The Company believes that by removing this significant financial obstacle, they can drive the company's growth and success to new heights.

By pursuing this debt purchase and removal, Kona Gold Beverages aims to enhance its attractiveness to potential investors, ensuring a clear and compelling path forward. The company is committed to maintaining transparent and open communications with all stakeholders throughout this process.

Kona Gold Beverages is pleased to announce the successful initiation of a production run for its HighDrate drinks. The initial production runs were smooth, with the cans boasting a striking appearance and the taste receiving positive feedback. However, subsequent to these runs, the manufacturer has been unresponsive and has proven unable to meet Kona Gold's large order demands. Consequently, Kona Gold Beverages is actively collaborating with several other manufacturers to ensure the timely and efficient production of HighDrate drinks, aiming to bring them back on track and to market as soon as possible.

Kona Gold Beverages would like to provide an update on the company's name change to NuVibe, Inc. The process is still underway, with an attorney having been retained, compensated, and diligently working on the necessary steps. This will be an extremely positive step forward for the company and its new direction. We are hopeful to have more concrete updates in the next few weeks and appreciate the patience and support of our shareholders during this transition.

For more information regarding Kona Gold Beverage, please visit: https://konagoldbeverage.com/

About Kona Gold Beverage, Inc.

Kona Gold Beverage, Inc., operates as a holding company for innovative brands. Through its subsidiaries, Kona Gold LLC, Covert LLC, and Surge Distribution, LLC, it offers a diverse range of healthy energy drinks and other premium products and distribution services. Kona Gold's premium line of energy drinks caters to health-conscious consumers, alongside its innovative HighDrate D9 Drinks. Covert LLC, operating out of Charlotte, NC, specializes in high-quality products, including Delta-8, THCa, THC-P, and Kratom. Surge Distribution, LLC, operating out of Melbourne, FL, is a diverse distribution company offering beverage and CPG products to a variety of retail locations from big box grocery stores to small family-owned specialty shops.  Headquartered in Melbourne, Florida, Kona Gold Beverage, Inc. is actively engaged in expanding its market presence through strategic acquisitions.

Investor Relations Contact:
Phone: 844-714-2224
Email: investorrelations@konagoldbeverage.com

Safe Harbor Statement: 

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. The Company may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company's Annual Reports on Form 10-K and its other filings with the Securities and Exchange Commission. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control. The Company does not undertake any obligation to update publicly or to revise any statements in this release, whether as a result of new information, future events, or otherwise.

View original content:https://www.prnewswire.com/news-releases/kona-gold-beverages-reaches-out-to-largest-debt-holder-for-debt-purchase-negotiation-302199298.html

SOURCE Kona Gold Beverage, Inc.

FAQ

What is Kona Gold Beverages (KGKG) doing to improve its financial position?

Kona Gold Beverages (KGKG) is negotiating with its largest debt holder to purchase and remove the debt from its financial statements, aiming to eliminate future debt conversions and strengthen its financial position.

What production challenges is Kona Gold Beverages (KGKG) facing with its HighDrate drinks?

Kona Gold Beverages (KGKG) is facing challenges with its current manufacturer being unresponsive and unable to meet large order demands for HighDrate drinks. The company is now collaborating with new manufacturers to address these issues.

Is Kona Gold Beverages (KGKG) changing its company name?

Yes, Kona Gold Beverages (KGKG) is in the process of changing its name to NuVibe, Inc. The company has retained an attorney to handle the necessary legal work for the name change.

What products does Kona Gold Beverages (KGKG) offer through its subsidiaries?

Kona Gold Beverages (KGKG) offers healthy energy drinks, HighDrate D9 Drinks, Delta-8, THCa, THC-P, and Kratom products through its subsidiaries Kona Gold , Covert , and Surge Distribution