The Alkaline Water Company Executes Memorandum of Understanding for Strategic Expansion Into Wholesale Distribution and Manufacturing
Rhea-AI Summary
The Alkaline Water Company (OTC:WTER) has signed a non-binding Memorandum of Understanding (MOU) to acquire a regional wholesale distributor and logistics platform in the central United States. The acquisition will be completed through an undisclosed amount of common stock, with a definitive agreement expected by the end of July 2025.
The target company generated $17 million in sales in 2024 and serves diverse retail outlets across multiple states, including convenience stores, specialty grocers, and liquor markets. The acquisition aims to enhance Alkaline88's distribution capabilities, particularly in the Colorado Front Range region, while advancing the company's vertical integration strategy and supply chain optimization efforts.
Positive
- Target company generated strong revenue of $17 million in 2024
- Acquisition expands distribution reach into underserved Central U.S. markets
- Integration provides access to new sales channels and retail customer base
- Vertical integration expected to improve operational efficiency and margins
- Deal strengthens supply chain capabilities and mitigates risks
Negative
- Acquisition terms and stock dilution details not disclosed
- MOU is non-binding and subject to due diligence
- Integration of operations may pose execution challenges
News Market Reaction
On the day this news was published, WTER declined 14.61%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The contemplated acquisition, subject to customary due diligence and negotiation of definitive agreements, is expected to be completed for an undisclosed amount of common stock. The Company anticipates executing a definitive agreement before the end of July 2025.
"This is an exciting and strategic opportunity for Alkaline88®," stated Ricky Wright, CEO of The Alkaline Water Company. "The target business has operated successfully for decades and serves a highly diverse retail customer base across multiple states. By integrating this distribution and warehouse infrastructure into our growing platform, we expect to accelerate our vertical integration strategy, mitigate supply chain risk, and open new sales channels previously unavailable to us in the
Unlocking Regional Reach and Vertical Capabilities
The target business currently supports a wide array of retail outlets, including convenience stores, specialty grocers, liquor markets, smoke shops, and gift boutiques. With a proven distribution model, extensive product catalog, and direct-store-delivery routes throughout the Colorado Front Range and beyond, the business provides a valuable backbone for expanding Alkaline88®'s distribution reach in underserved markets.
In addition to its impressive historical footprint and relationships, the platform generated over
"This potential transaction represents a cornerstone opportunity," added Wright. "It positions us not only to distribute our own premium hydration products more efficiently, but also to serve as a logistics partner to other brands across multiple verticals. This is a critical move to improve operational flexibility, scale nationally, and pursue margin-enhancing opportunities."
About The Alkaline Water Company, Inc.
The Alkaline Water Company Inc. (OTC: WTER), is a leader in the premium beverage industry, committed to providing superior, clean, and pure hydration solutions to consumers nationwide. The company's flagship Alkaline88® brand has built strong recognition and consumer loyalty due to its simple, clean ingredient profile. Alkaline88® is crafted using a proprietary electrolysis process that infuses purified water with Himalayan rock salt, trace minerals, and electrolytes, achieving a perfectly balanced 8.8 pH, free of chemicals and additives. Under the leadership of returning co-founder Ricky Wright as CEO, the company is implementing disciplined strategies to drive operational improvements, market expansion, and sustainable profitable growth. The company is currently working toward achieving full SEC reporting compliance with the engagement of a PCAOB-registered auditor.
Disclaimer Regarding Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements and include statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, the Company can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control), assumptions and other factors that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for the Company's common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the SEC. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Website: www.thealkalinewaterco.com
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SOURCE Alkaline Water Company Inc
FAQ
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