July 25/Lewes, Del./Marketwire -- NuVim Inc. has signed a letter of intent to take a stake in Gran Nevada Inc. and conduct their beverage operations through 2014. As the operating entity, NuVim will make the sales of current and future Gran Nevada products and share a percentage of the profit contribution from the sales with Gran Nevada. Revenues for sales of Gran Nevada ready-to-drink beverages, including their flagship product, Horchata, a rice and milk based beverage product targeted at the Hispanic market, is estimated to reach $1,000,000 during the next 12 months. NuVim will supervise the manufacture of Gran Nevada products with quality control supervision provided by Gran Nevada.

Consummation of the transaction depends on NuVim raising $100,000 in funding to help support the Gran Nevada business going forward. Upon consummation, NuVim will issue 3.5 million restricted common shares for its stake in Gran Nevada and assume operating control of Gran Nevada beverage business. Gran Nevada and NuVim will take advantage of their diverse strengths in sales and distribution to increase revenues of both brands. Current Gran Nevada distribution of its beverage products is centered on the East Coast, in an estimated 1,000 independent retail stores commonly referred to as bodegas and other ethnic supermarkets, with a heavy concentration in the Mid-Atlantic and Northeast.

Gran Nevada president Fernando Oswaldo Leonzo said, "I am pleased to team up with NuVim's management and their resource team to assist Gran Nevada in building our family business. Rick Kundrat and I have been discussing a business relationship between the two companies for a couple of years. After independently restructuring both companies we have been able to put this together to our mutual benefit."


From the August 1, 2011, Prepared Foods' Daily News.