Pleasant Kids, Inc. Announces Acquisition, MOU, and End of Year Corporate Update
FORT LAUDERDALE, Fla., Dec. 24, 2014 /PRNewswire via COMTEX/ -- Pleasant Kids Inc. (OTCMARKETS: PLKD), is pleased to announce that we are negotiating the terms of a MOU with an investment banking firm for the placement of a preferred share offering for the purposes of a capital raise in the amount of $1.5 million dollars. Pleasant Kids will reserve the right to buyback the preferred at preset terms that are beneficial to both the company and investors. The purposes for these funds is to:
1. Allocate $400,000 into the buyback of the company's common stock. We are committed to the lowering of our share structure and this is a way to help facilitate that goal. This will be a huge step towards reaching the goal of large scale share reductions and increased shareholder value.
2. The acquisition of our own water source and bottling facility. This acquisition will allow us to bottle our water at its source thus providing a streamlined, cost effective and efficient means of getting our product to market. The facility has both a hot fill and cold fill bottling line and we will be able to produce approximately 250,000 bottles of finished product per 8 hour shift. Pleasant Kids will realize an immediate and long term cost savings to our bottom line. It will also add $2.5 Million dollars in assets to our financials and allow us to reach profitability in a very short term. We will no longer be dependent on others for our production and gain the ability to produce large scale orders with minimal notice and meet the upcoming expectations of our large scale clients.. The facility has warehousing capacity that will allow us to store up to 5 million bottles of our water and apple juice products having them readily available to meet the logistical demands of transporting our product nationwide from a centrally located vantage point. We have acquired a working interest in this facility and have received the exclusive right to acquire the remaining interest and bring this to a close for a period of 24 months commencing on Feb 1, 2015. We are finalizing all terms to be placed in the agreement and expect to be operating the facility by 03/1/2015 with renovations and upgrades beginning in Feb 2015. Success in the preferred offering will expedite the full closure of this transaction but will not stop us from moving forward as we expect that proceeds from sales will allow for the payoff of this transaction within the agreed upon period.
3. The purchase of equipment necessary to make our own bottles and caps. Bottles are the largest expense in the production of our products representing over 50% of our production costs in both our water and juice products. Making our own bottles and caps represent a tremendous savings and creates a steam rolling effect towards profitability. The importance of controlling our product from beginning to end is critical to our vision of nationwide acceptance of our products.
Whats Next...
** We are pleased to report the successful launch of our apple juice product. It is now available for order. Please visit www.pleasantkids.com to place your order. We will be announcing the lucky winner of the drawing on 12/31/2014 on Facebook. It's not to late to enter so order today.
**We are currently in negotiations with two large shareholder groups to convert a portion of their holdings (approx. 200,000,000 shares) to preferred shares and to retire the common shares. This gives us a three pronged approach( our online store, preferred offering, and shareholder conversion to preferred) towards achieving our goal of a large scale reductions to our outstanding and tradable shares in 2015. We will announce the results of this as soon as it is complete.
**Production update: We have begun with the initial production of 200k bottles of our water product and 100k bottles of our juice product. We have had great success with pre orders and believe that once our apple juice is tasted it will gain mass market appeal. We have begun filling our online and client orders and we are happy to report that we will be very close to sold out thus we have scheduled our next production run to be in January. We expect revenue from our December production run alone to be in excess of $140,000.00 between the two products. We expect the demand for our water and apple juice to increase monthly therefore our January product run will be for 300k bottles of water and 200k bottles of apple juice and possibly higher. We will continue to increase our production as the need arises and will meet all scheduled demands for our products. We have set 2015 revenue goals at a minimum of ($2,000,000) Two Million Dollars for the year. This is a very conservative approach and would require only minimal increases over our December production values.
**Client updates: Our relationship with C and B International is a key component of our desire to achieve exponential growth. We are continuing to show our ability to meet their demands and through their persistence and our preparation we are very close to adding a very large scale client. In addition, we will complete the deliveries to the remaining (27) 7- Eleven stores in the coming weeks and through C and B, we expect to expand our footprint to reach 300 7-Eleven stores in the near term. The sky is the limit with this as merely a 1/4 pallet, (40 cases) per month per store, is 100 pallets per month on a recurring basis. We ask that you respect this relationship as it is one of great benefit to us all.
**60 ICCF Charter Schools: We are gaining traction with our school system partner and expect great things. The plan for 2015 is for a minimum of one pallet per month, per school on a recurring basis. There is no better place for our "Where Healthy Begins Campaign" to start than in the schools. This relationship will open the door to adding additional school systems to our family in the future
**Associated Grocers: We will be a vender at the upcoming Associated Grocers trade show in Feb. 2015. We will be fully approved to sell our water and apple juice to their member grocers. With more than 10,000 member grocers, this presents an enormous opportunity for Pleasant Kids as we are better able to handle the demands that will be presented. 2014 was spent developing and nurturing this relationship and we expect that it will bare an abundance of fruit in 2015
**Additional flavors: Launch of our all natural fruit punch flavor is set for April, 2015. other all natural fruit flavor in July, 2015, to be determined by shareholders. In addition we will bottle our high alkalized pH water in BPA free one gallon size containers by the summer of 2015. The additional products will make us a more complete and competitive beverage company and we will look to capitalize on our mission of "Where Healthy Begins" as all of our products will be all natural and contain vital nutrients that our children need.
**Certified New York Bottler: We are applying for New York certification which is a requirement that will allow us to distribute our products throughout the state.
Year in Review: Share Reduction to A/S, Share Buyback, Apple Juice Launch, Name and Ticker change, Corporate relocation to Florida, and the addition of co-packers for our water and juice products.We would like to offer continued thanks to our family of shareholders. Your support is much appreciated.
Please stay tuned. There is so much more to follow.
About Pleasant Kids Inc.
Headquartered in Fort Lauderdale, FL, Pleasant Kids is America's premier supplier of naturally balanced alkalized spring water, "healthy water" and all natural apple juice for children. The company features copyrighted mascot characters along with our national "Where Healthy Begins" campaign promotes a healthy lifestyle and educates children on the benefits of our products. Additionally, all the products are eco-friendly, BPA free, Non-toxic, No Bisphenol A, and No Phthalates. Pleasant Kids Inc. owns and operates Pleasant Kids EXTRA, Inc. EXTRA manages the intellectual copyrights to the characters and makes them available for select and limited business development, sponsorship opportunities and licensing deals.
