Eco-Growth Strategies Inc. (ECGS)

[Coreton]

Royal Hawaiian Water and Coffee Co.

They did business as Hawaiian Isles water and Hawaiian Isles Coffee.

It appears from what’s been made public that a combination of over expansion and COVID saddled the company with an insurmountable level of debt.

It appears that ECGS has purchased the bottling facility and a certain amount of inventory and production supplies.

Prior to COVID. The water and Coffee companies generated $20 to $22 million in revenue by 2022 that revenue stream had dropped to $13-$15 million with 7 or 8 distribution warehouses across the Hawaiian islands, overhead costs were well in excess of the post Covid revenue.

The companies filed for bankruptcy in late 2022 after multiple lease holders shutout the company due to non payment. With little or no access to product, the company was forced to seek Bk protection and later ceased all business operations.

Hawaiian Isles water was sold at a wide range of retail outlets across the Hawaiian islands.

IMHO this looks like a prime example of mismanagement, this company had been in business since 1995 and had enjoyed a fairly event free existence till 2020.

Will be interesting to see what was paid for the assets and what was included. From what I could find it appears that the bottling facility is 4-7 years old, so it should be up to date.

GLTA

Cor