NuVim Takes Stake in 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.