Read up on it.. This is AWSOME news and will lead to higher shares. Basically makes BRVO a subsidary of Coke.. using thier money to distribute the product etc. Here we go. :)
Whats funny is coke is paying a PREMIUM for these options that were valued for much less. The holders of the 'options' will make money, and Coke will have instant equity in Bravo!.
I'm cracking up that this dropped under $1 again today. Obviously a lot of people didnt understand what this means for a company like BRVO. Wow, what a ride. Glad I could get more today.
bizjournals.com Coca-Cola may buy most of Bravo Thursday July 14, 11:01 am ET
A stock option agreement may allow Coca-Cola Enterprises to buy a chunk of Bravo Foods International. A stock purchase agreement may elevate that chunk to more than half of the company. The North Palm Beach-based brand development and marketing firm that makes, promotes and distributes fortified milk said Coca-Cola has bought options to buy shares of common stock, convertible securities and warrants.
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In sum, the options entitle Coca-Cola to about 69 million common shares from 12 Bravo (OTC BB: BRVO - News) shareholders, the company said.
The common stock, plus other securities underlying the options, represent about 23 percent of authorized Bravo shares, the company said. The company has 63.49 million shares outstanding.
Coca-Cola's right to buy the common stock under the options is for 36 cents a share. That makes the deal worth at about $24.84 million.
However, that doesn't include negotiations Bravo said it has begun with Coca-Cola for a stock purchase agreement for Coca-Cola to directly buy about 81 million Bravo common shares.
Using Wednesday's closing price, that part of the deal is worth about $97.2 million.
If Coca-Cola buys the shares, plus uses its options, Bravo said Coca-Cola will own slightly more than half of Bravo equity.
With the options grant, Bravo said it and Coca-Cola are negotiating a master distribution agreement for Bravo products selling in the United States and its possessions, plus internationally in Canada, Belgium, France, Great Britain, Luxembourg, Monaco and the Netherlands.
For Coca-Cola to exercise its options, Bravo said the companies must complete due diligence and execute a mutually satisfactory definitive master distribution agreement.
None of the entities granting the options are Bravo affiliates, the company said.
Bravo also said its board has formed an independent committee to help negotiate with Coca-Cola. The committee is authorized to retain an independent banker to evaluate the transaction.
Shares closed Wednesday at $1.20. The 52-week high was $1.21 on June 27. The 52-week low was 10 cents on Nov. 30.
Published July 14, 2005 by the South Florida Business Journal
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