ChampionLyte Holdings, Inc. Obtains $20 Million in Equity Financing
Wednesday December 8, 8:59 am ET
Proceeds to Finance Brand Development and Potential Acquisitions
MIAMI, Dec. 8 /PRNewswire-FirstCall/ -- ChampionLyte Holdings, Inc. (OTC Bulletin Board: CPLY - News) announced today the company has obtained $20 million in committed equity capital in the form of a Standby Equity Distribution Agreement (SEDA) with an institutional investor.
Under the terms of the SEDA, the investor has committed to provide up to $20 million of funding to the Company over a 24-month period to be drawn down at the Company's discretion by the sale of its common stock to the investor.
Company President, David Goldberg, said the funds will be primarily used to finance brand development as well as potential acquisitions.
"While we believe we've made great strides in brand development and distribution, access to these additional capital resources will allow us to further expand our ChampionLyte® Sports Drinks and Sugar-Free Syrups brands and help launch our new Be-Lyte®, low-carb subsidiary," said Goldberg. "We also intend on seeking out acquisitions that are complementary to our existing business that will be accretive to earnings."
ChampionLyte Beverages, Inc. manufactures and markets ChampionLyte®, the first completely sugar-free entry in the multi-billion dollar isotonic sports drink market. It is the only sports drink with no sugar, calories, sorbitol, saccharin, aspartame, caffeine or carbonation. The reformulated product is sweetened with Splenda®, the trade name for Sucralose produced by McNeil Nutritionals, a Johnson & Johnson company.
With the establishment of its low-carb subsidiary, Be-Lyte® Foods, the Company recently entered the low-carb products market, expected to hit $30 billion in sales this year according to trade publication LowCarbBiz.
