Bravo! Foods International Corp. has signed a letter of intent to negotiate a master distribution agreement and a direct purchase stock agreement with Coca-Cola Enterprises (CCE).
The letter of intent with CCE confirmed both parties' intention to move forward with further negotiations for the execution of a master distribution agreement between Bravo! and Coca-Cola Enterprises, and for continued negotiations to enter into a stock purchase agreement, pursuant to which CCE would purchase from Bravo! approximately 81,030,000 shares of the company's common stock for $0.16245 per share.
Bravo! CEO Roy Warren said, "A distribution and purchase agreement with one of the largest distributors in the country is a giant leap forward for Bravo! as we continue our momentum in retail outlets across the county and abroad. We look forward to a mutually beneficial relationship with CCE and substantial growth of Slammers worldwide as a result."
The master distribution agreement with CCE would grant exclusive distribution rights to CCE throughout North America and other territories in which CCE is licensed to bottle products of The Coca-Cola Company, for all existing and future Bravo! products during the term of the agreement.
The letter of intent also confirmed that, with the direct purchase of common stock from Bravo! by CCE, together with shares of common stock purchasable upon the exercise of options to acquire a total of 68,990,244 shares of Bravo's common stock purchased by Coca-Cola at $0.36 per share from nine different non-affiliated investors, CCE will hold slightly in excess of 50% of Bravo's equity on a fully diluted basis. If consummated, the controlling interest would be purchased by CCE for an average price per share of approximately $0.25.