8K from Bravo...looks like all the action will begin from 2006! So Bravo will not need capital this year. They will still still need working capital which may be gotten from warrants conversion (more dilution) but necessary.
8-Sep-2005
Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure
On September 6, 2005, The Company held a public conference call to discuss a Master Distribution Agreement (the "Agreement)" with Coca-Cola Enterprises Inc.(CCE) for the distribution by CCE of the Company's flavored milk drink products in the entirety of the United States, all U.S. possessions, Canada, Belgium, continental France, Great Britain, Luxembourg, Monaco and the Netherlands, as well as any other geographic territory to which, during the term of the Agreement, CCE obtains the license to distribute beverages of The Coca-Cola Company. The Company made the following comments and noted the following material terms of the MDA during the conference call:
* The appointment of CCE as the exclusive distributor for the Company's products in The territory is effective August 30, 2005, has an effective distribution date of October 31, 2005, and an expiration date of August 15, 2015.
* CCE has the option to renew the Agreement for two subsequent periods of ten additional years.
* Under the terms of the Agreement, CCE is obligated to use all commercially reasonable efforts to solicit, procure and obtain orders for the Company's products, and merchandise and actively promote the sale of such products in the Territory, as defined in the Agreement.
* The Agreement establishes a comprehensive process for the phased transition from the Company's existing system of distributors to CCE, dependent upon distribution territory, product and sales channels. The parties have agreed that CCE will implement its distribution on a ramp-up basis, with the initial distribution commencing in the United States on or about the October 31, 2005 effective distribution date.
* With regard to the phased in transition to CCE distribution, the Company noted that its anticipated revenues would not materially increase during 2005 as a result of distribution by CCE, which will commence October 31, 2005.
* CCE may terminate the MDA upon twelve months notice after August 15, 2006.
* The Company has agreed to provide strategic direction of its products; maintain sales force education and support; actively market and advertise its products and design and develop point of sale materials and advertising.
* Under the Agreement, CCE has the right of first refusal to distribute any new products developed by the Company, and the Agreement establishes a process for the potential expansion of CCE's distribution of the Company's products to new territories.
* CCE may distribute products that compete with the Company's products.
* Production capacity will remain at 2,500,000 units per month until April 2006, when capacity will increase to 7,500,000 units per month.
* The Company does not have capacity issues with respect to its foreign business.
The Company announced that it will introduce a new lactose free milk based meal replacement product in November 2005 through 7-Eleven convenience stores, called Bravo! Breakfast Blenders. This new product has 50% more protein than milk and is positioned as "better for you meal on the go" beverage.
The Company offered the following guidance with respect to anticipated revenues:
* Third quarter revenues are expected to be in the $4 million range
* Fourth quarter revenues are expected to be in the $6 million to $7 million range
* Total revenues for 2006 are expected to be in the range of $70 million to $100 million with the increased implementation of CCE distribution
* Domestic Revenues for 2006 are expected to be in the range of $50 million to $60 million
