The Alkaline Water Company Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

The Alkaline Water Company, the largest independent alkaline water brand in the U.S., announced the closing of its public offering of 8,333,334 shares at $0.60 each, raising approximately $5 million. Aegis Capital Corp. managed the offering, which includes a 45-day option for underwriters to purchase an additional 15% of shares, potentially bringing total proceeds to $5.75 million. This offering is under an effective shelf registration statement with the SEC. The Company aims to further its growth in the alkaline water market.

Positive

• Raised approximately $5 million from the public offering.
• Possibility of increasing total proceeds to $5.75 million if the over-allotment option is exercised.

Negative

• Potential dilution of existing shares due to the public offering.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the "Company"), the country’s largest independent alkaline water company and the Clean Beverage® company, today announced the closing of its public offering of 8,333,334 shares of common stock at a public offering price of $0.60 per share. The gross proceeds of the offering were approximately $5 million before deducting underwriting discounts, commissions and offering expenses.

In addition, the Company granted the underwriters a 45-day option to purchase additional shares of common stock, representing up to 15% of the number of the shares, solely to cover over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $5.75 million, if the over-allotment option is exercised in full, before deducting underwriting discounts, commissions and offering expenses.

The common stock is trading on The Nasdaq Capital Market under the symbol “WTER”.

Aegis Capital Corp. acted as the sole book-running manager for the offering.

This offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-262683) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on March 24, 2022. A final prospectus supplement and accompanying prospectus (collectively, the "Prospectus") describing the terms of the offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the Prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sales of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About The Alkaline Water Company

The Alkaline Water Company is the Clean Beverage® company making a difference in the water you drink and the world we share.

Founded in 2012, The Alkaline Water Company (NASDAQ and CSE: WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88®, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH alkaline drinking water with trace minerals and electrolytes and boasts our trademarked label "Clean Beverage." In 2021, The Alkaline Water Company was pleased to welcome Shaquille O’Neal to its board of advisors and to serve as the celebrity brand ambassador for Alkaline88®.

To purchase The Alkaline Water Company’s products online, visit us at www.alkaline88.com.

To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect with us on Facebook, Twitter, Instagram, or LinkedIn.

Forward-Looking Statement Disclaimer

This news release contains "forward-looking statements." Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the following: statements relating to the exercise of the over-allotment option.

The material assumptions supporting these forward-looking statements include, among others, that the demand for the Company’s products will continue to significantly grow; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that there will be an expansion into new national and regional grocery retailers; that there will be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products, including products containing hemp/CBD; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply-chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; and competition in the industry in which the Company operates and market conditions. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations, and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on the SEDAR, available at www.sedar.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005526/en/

The Alkaline Water Company Inc.

Jeff Wright

Director of Investor Relations

866-242-0240

investors@thealkalinewaterco.com

Source: The Alkaline Water Company Inc.

FAQ

What is the recent public offering price of WTER?

The public offering price of WTER was $0.60 per share.

How much did The Alkaline Water Company raise in its recent offering?

The Alkaline Water Company raised approximately $5 million from its recent offering.

Is there an over-allotment option for the WTER stock offering?

Yes, underwriters have a 45-day option to purchase an additional 15% of shares from the offering.

What are the implications of the public offering on existing WTER shareholders?

The public offering may lead to dilution of existing shares.

Who managed the public offering for The Alkaline Water Company?

Aegis Capital Corp. acted as the sole book-running manager for the offering.