Boreal Water Collection Is in Process of Completing Retirement of All Convertible Notes From Its Balance Sheet
Program Strengthens Company's Balance Sheet, Represents Major Step Under Re-Capitalization Plan; 1st Quarter Results: Sales Up 18%, Debts Down 18%
KIAMESHA LAKE, NY--(Marketwired - Apr 29, 2015) - Boreal Water Collection, Inc. (OTC PINK: BRWC), a high end private label bottled water company from NY, announced today that it is in the process of retiring all of its outstanding convertible notes held by various financing companies.
"Our goal is to become a fully sustainable free cash flow business by the end of 2015," said Francine Lavoie, chief executive officer. "Retiring of all the convertible debt will help reduce uncertainty in our equity structure and represents a major step in our plan to re-capitalize Boreal Water and strengthen its balance sheet. We are anxious to complete this program and to continue our focus on growing our business, and adding value for our shareholders. All of the debt conversions have resulted in a significant reduction in the Company's debt in our 1st quarter of $585,000. We believe that by the end of the 2nd quarter, we will have reduced our debt burden in convertible notes by 100% and will have reduced our debt by $800,000. As a result of the Company's growth, going forward we believe that we can cease the use of convertible debt financing to fund our operations and expansion.
"A significant amount of the company's operating loss and dilution to shareholders was attributable to these convertible note instruments. While such debt served a purpose during a time when we were investing in creating revenues and developing new products, we are happy to be moving ahead without this type of debt instrument.
"We have no intention to issue any more convertible notes. Since October 2014, we have not entered into any new convertible promissory note agreements. In fact, almost daily, we are turning down offers of additional financing. The fact is, going forward we can no longer justify to ourselves or our shareholders the cost of this type of financing. We are not pleased at our stock price, but unfortunately we have little to no control over the share price and the market."
