Kona Gold Beverage Significantly Reduces Debt from Multiple Holders

Rhea-AI Summary

Kona Gold Beverages, Inc. (OTCPK: KGKG) has made significant progress in reducing its debt and improving financial stability. The company has:

• Paid off a high-interest loan of $312,750 from Merchant Cash Advance (MCA)
• Nearly completed payments on a second MCA loan of $274,000
• Negotiated a stock exchange agreement for a $260,000 line of credit

The new management team is focused on cleaning up the balance sheet and positioning the company for growth. Negotiations are ongoing with the largest debt holder to eliminate remaining debt. These actions aim to strengthen Kona Gold's financial position and enable new investments and opportunities.

Positive

• Paid off a high-interest loan of $312,750
• Nearly completed payments on a second loan of $274,000
• Negotiated a stock exchange agreement for a $260,000 line of credit
• Management's focus on debt reduction and financial stability

Negative

• Substantial debt accumulated under previous management
• Ongoing negotiations with largest debt holder still pending resolution

Company pays off high interest debt and reaches debt settlement with debt holder

MELBOURNE, Fla., July 31, 2024 /PRNewswire/ -- Kona Gold Beverages, Inc. (OTCPK: KGKG), is pleased to inform its shareholders of significant progress in reducing the company's debt and enhancing its financial stability. The management team has successfully paid off one of the high-interest loans taken from Merchant Cash Advance (MCA) companies in 2023, with the original amount being $312,750. The company has only two payments remaining on the second MCA loan, originally $274,000. These actions represent a major step towards financial recovery and growth.

Additionally, Kona Gold Beverages has successfully negotiated an agreement with the holder of a $260,000 line of credit, involving a stock exchange agreement instead of direct repayment. The shares involved in this agreement will have a two-year holding period, providing further stability and aligning the interests of stakeholders with the company's long-term growth.

Under previous management, the company accumulated substantial debt, which has been a significant barrier to growth. The new management team is committed to cleaning up the balance sheet and setting the company on a path to success. Kona Gold Beverage's primary goal remains to strengthen its financial position, enabling new investments and opportunities.

The Company is currently in negotiations with its largest debt holder to fully eliminate this debt, the final major hurdle in our debt reduction strategy. Kona Gold Beverages will continue to update shareholders on its progress as the Company eliminates remaining debts and focus on driving growth and success.

Kona Gold Beverage appreciates the continued support of its shareholders as the Company works diligently to secure a prosperous future for Kona Gold Beverages.

For more information regarding Kona Gold Beverage, please visit: https://konagoldbeverage.com/

About Kona Gold Beverage, Inc.

Kona Gold Beverage, Inc., operates as a holding company for innovative brands. Through its subsidiaries, Kona Gold LLC, Covert LLC, and Surge Distribution, LLC, it offers a diverse range of healthy energy drinks and other premium products and distribution services. Kona Gold's premium line of energy drinks caters to health-conscious consumers, alongside its innovative HighDrate D9 Drinks. Covert LLC, operating out of Charlotte, NC, specializes in high-quality products, including Delta-8, THCa, THC-P, and Kratom. Surge Distribution, LLC, operating out of Melbourne, FL, is a diverse distribution company offering beverage and CPG products to a variety of retail locations from big box grocery stores to small family-owned specialty shops.  Headquartered in Melbourne, Florida, Kona Gold Beverage, Inc. is actively engaged in expanding its market presence through strategic acquisitions.

Investor Relations Contact:
Phone: 844-714-2224
Email: investorrelations@konagoldbeverage.com

Safe Harbor Statement: 

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. The Company may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company's Annual Reports on Form 10-K and its other filings with the Securities and Exchange Commission. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control. The Company does not undertake any obligation to update publicly or to revise any statements in this release, whether as a result of new information, future events, or otherwise.

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SOURCE Kona Gold Beverage, Inc.

FAQ

What progress has Kona Gold Beverages (KGKG) made in reducing its debt?

Kona Gold Beverages has paid off a $312,750 high-interest loan, nearly completed payments on a $274,000 loan, and negotiated a stock exchange agreement for a $260,000 line of credit. The company is also in negotiations with its largest debt holder to eliminate remaining debt.

How is Kona Gold Beverages (KGKG) addressing its financial stability?

The new management team is focused on cleaning up the balance sheet by paying off high-interest loans, negotiating debt settlements, and working to eliminate remaining debts. These actions aim to strengthen the company's financial position and enable new investments and growth opportunities.

What is the status of Kona Gold Beverages' (KGKG) negotiations with its largest debt holder?

As of July 31, 2024, Kona Gold Beverages is currently in negotiations with its largest debt holder to fully eliminate this debt, which is described as the final major hurdle in their debt reduction strategy. The outcome of these negotiations has not yet been announced.