News of Mexican Distribution Fuels RushNet Stock
Posted on Friday, June 30 @ 09:26:57 CDT
NEWS OF MEXICAN DISTRIBUTION FUELS RUSHNET STOCK
Company stock spikes after larger than anticipated order is placed
By BETHANY ANDERSON
BLUE ISLAND, ILL (June 29, 2006) – One might say that the ginseng-fueled beverages they distribute made for an energetic day after news of a larger order than anticipated from a Mexican distributor caused RushNet, Inc. (OTC: RHSN) shares to spike Tuesday. The shares spiked Tuesday with a 27 percent surge and a $0.0028 finish, with about 82 million shares traded. The spike is attributed to news that the company inked an initial purchase order with Mexican distributor Super Mayoreo Naturista Co. for 4,000 cases of its products, which include Ginseng Rush, Ginseng Rush XXX and Rush Ginseng Cola. The order is expected to be shipped by next week.
RushNet CEO Robert Corr said an order had been expected after speaking with the Mexican company’s principals at Expo West in Anaheim, Calif., but the size of the order surprised them. "While they are the largest distributor of Ginseng products in Mexico we were expecting only a one container order total for our three products. To my surprise they ordered 4,000 cases, three times as much,” Corr said in a press release. “This is a great opportunity for RushNet's licensed products in a country with a significant consumption of ginseng products. We expect Ginseng Rush XXX to be the best seller and when that happens we will bring Rush Cola XXX to market in Mexico as well."
RushNet is also hoping to export the product line – which contains American Ginseng – even farther after an appearance at the Natural Products Expo in Tokyo in September. More than 15,000 are expected to attend the convention. "Sale of raw American Ginseng Root has been heavy into Asia since the 1700's, and we expect a dynamic response to existing beverages and our new 8.4 ounce energy drink, as well as our other Ginseng products at Expo Japan," Corr said. These conventions and expos seem to be a gold mine for Corr’s company. In October, RushNet will also have a booth at the National Convenience Store Convention in early October, in Las Vegas.
"Over 23,000 buyers will be at the Expo," Corr said, "and this is another tier of market penetration RushNet is looking forward to exploiting, and we'll be ready for it. Our expanded ginseng product line, featuring the two capsule packets of American Ginseng Capsules in an attractive counter-top display box, will be introduced at this show and Expo East 2006 in Baltimore the weekend before." The company is also the brand owner of e-water, and recently unveiled the new Organic Apple Rush. “People loved the taste and we have retailers and distributors ready to order the product for this summer," Corr said of the new product.
Last month, RushNet announced an advertising agreement with Plasma Advertising Systems (PAS) for production of video-on-demand spots for the e-water brand. The spot was first broadcast by Comcast Cable in the Chicago area, and can also be viewed at http://www.enjoytherush.com/ewater.htm. "PAS will create multiple info-tainment spots to showcase the benefits of e-water(TM) and other RushNet products, and create awareness about the product at retail," PAS founder Terry Souza explained in a press release. "
RushNet also plans on showing the five minute spot at select gyms in Los Angeles and Chicago. Buyers at those clubs will also receive a simultaneous direct mailing. "We will build e-water's presence in LA and Chicago with our new merchandising tools; decorated counter-top coolers, ice bins and display racks to retail stores, clubs and restaurants," Corr said. The company also recently expanded to larger offices and hired additional sales staff, including Bill Daker as brand manager. "Adding Bill Daker as brand manager for e-water gives us an experienced professional to drive sales of the brand,” Corr said. “Bill is in the process of appointing more distributors for e-water throughout the U.S."
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