1812 Brewing Company Inc (KEGS)

[az_maverick]

As of July 1, 2007, Seaway Capital, Inc. controls 100% of our outstanding Series B preferred stock after competing the purchase from GreenShift corporation. The preferred shares are convertible into 80% of our Common Stock. As a result,
Seaway Capital, Inc. exerts a significant degree of influence over our management and affairs and over matters requiring stockholder approval,
including the election of directors and approval of significant corporate transactions....

The issuance of shares under our convertible debentures agreements could increase the total common shares outstanding by 7%.

While the debentures are subject to restrictions on conversion, upon default the holders of the debentures could convert such debentures into approximately 43,975,391 shares based on the market price on September 30, 2007.