“This access to capital from LPC increases our flexibility to increase product awareness with consumers via marketing and retail expansion, build inventory, pursue additional product development and formula creation, and continue to build the KonaRed brand,” stated Shaun Roberts, President and CEO of KonaRed.
During the 30-month term of the purchase agreement the company, at its sole discretion, has the right to sell to LPC up to $12 million of its common stock, in amounts as described in the purchase agreement and subject to certain conditions, which include the effectiveness of a registration statement with the U.S. Securities and Exchange Commission (SEC) registering the sale of the shares that may be issued to LPC. KonaRed controls the timing and amount of any future investment and LPC is obligated to make purchases, if and when KonaRed elects in accordance with the purchase agreement.
KonaRed Corporation also announced it is officially joining forces with biotech and ingredient supplier powerhouse VDF FutureCeuticals. FutureCeuticals is the owner of the patent-protected CoffeeBerry coffee fruit technology, a proprietary set of agricultural and industrial processes and a line of unique ingredients that capture the potent nutrition inherent in coffee fruit, a material that the coffee industry had considered a waste product.
The partnership brings together the flavor profile of KonaRed's beverage, the mass-appeal and spirit of the Hawaiian Islands, and the ingenuity, innovation, and ongoing chemistry and clinical research of FutureCeuticals' globally integrated CoffeeBerry coffee fruit ingredient platform. The announcement was made by Shaun Roberts, CEO of KonaRed Corporation and John Hunter, executive vice president of FutureCeuticals, in connection with the announcement that the patent litigation that had been pending between the parties since 2011 had been resolved.
"Finding ways to work together, bridge differences, and create something stronger than the sum of its parts is what the spirit of Aloha is all about, and this dispute with FutureCeuticals is a perfect example," said Roberts. "This new relationship was forged within the crucible of the lawsuit. During productive discussions with FutureCeuticals, it became apparent that there were obvious synergies available to KonaRed if we worked together. The CoffeeBerry coffee fruit IP opens up limitless opportunities for us, and I have no doubt that we're now a far stronger company than we were before."
"KonaRed has built a very strong brand concept and shows real promise in the marketplace," said Hunter. "During our negotiations, Shaun and Dana Roberts impressed us... it became immediately apparent that they are genuine people and terrific marketers. KonaRed is a natural match for our IP and for the extensive science and manufacturing expertise that underlies our CoffeeBerry coffee fruit ingredient-line. FutureCeuticals welcomes KonaRed into our license fold, and we see a new, even stronger KonaRed emerging from this lawsuit with our partnership."
Also, KonaRed has posted five videos of its bottling facility in San Clemente, Calif., offering a behind-the-scenes look at the automated assembly line bottling of KonaRed products as they are prepared for distribution. The videos can be accessed at KonaRed's website at http://www.konared.com/videos-images/.
The videos showcase production of KonaRed Original in different areas of the bottling facility such as label application using a sleeving machine, conveyors for transporting product to and from turntables or other packaging lines, bottle unscramblers, shrink wrapping, and pallet packaging.