The Alkaline Water Company Finalizes Strategic Equipment Acquisition

Rhea-AI Summary

The Alkaline Water Company (OTC: WTER) has completed its strategic equipment acquisition from FZA Note Buyers through its subsidiary Alkaline Water AZ The transaction, initially announced via LOI on February 13, 2025, was executed through the issuance of 34,000,000 restricted shares with a 12-month lock-up period.

The acquisition gives WTER control over its production lines for the first time, aiming to enhance manufacturing capabilities, reduce production costs, and improve margins. The company expects to realize significant cost savings and operational efficiencies in the current fiscal year.

This move follows a recent national distribution agreement with a major U.S. wholesale grocery distributor, positioning WTER for expanded market presence in the premium water category.

Positive

• Equipment acquisition provides direct control over production lines
• Transaction structure preserves cash position through share issuance
• Expected cost savings and operational efficiencies
• Recent expansion of distribution network through new national agreement
• Strategic timing ahead of high-volume summer season

Negative

• Potential shareholder dilution from 34,000,000 new shares issued

News Market Reaction

-22.73%

1 alert

-22.73% News Effect

On the day this news was published, WTER declined 22.73%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Company strengthens its manufacturing capabilities and looks to reduce production costs and improve margins

SCOTTSDALE, Ariz., April 22, 2025 /PRNewswire/ -- The Alkaline Water Company, Inc. (OTC: WTER) a leader in the beverage industry known for its purified alkaline water, enhanced with Himalayan rock salt, today announced the finalization of its previously announced equipment acquisition with FZA Note Buyers LLC, a Florida limited liability company, through its wholly owned acquisition entity Alkaline Water AZ LLC. The acquisition has been completed through the issuance of 34,000,000 shares of Restricted Stock subject to rule 144 and a 12-month lock-up period imposed by The Alkaline Water Company, Inc. (OTC: WTER).

The completion of this transaction follows the Letter of Intent announced on February 13, 2025 and marks a milestone in The Alkaline Water Company, Inc. (OTC: WTER ) strategy to enhance control over its manufacturing process, improve margins, and increase supply chain reliability. With the equipment fully integrated into its production infrastructure, The Alkaline Water Company expects to realize significant cost savings and operational efficiencies beginning in the current fiscal year.

"This is a major step in our operational transformation and vertical integration strategy, with the successful completion of our strategic equipment acquisition with FZA Note Buyers LLC," said Ricky Wright, CEO of The Alkaline Water Company, Inc. (OTC: WTER ) "For the first time in our company's history, we now have control over our own production lines, which is particularly valuable as we approach the high-volume summer season when securing production line time is always challenging. This acquisition strengthens our manufacturing capabilities while preserving our cash position, as the transaction was structured through restricted shares with a 12-month lock-up period, ensuring no impact on our current trading float."

The acquisition closely follows the announcement of a national distribution agreement with a leading U.S. wholesale grocery distributor announced earlier this week, which expanded Alkaline88's footprint across key U.S. regions. Together, these strategic initiatives position The Alkaline Water Company, Inc. (OTC: WTER) for accelerated growth and enhanced market penetration in the premium water category.

About The Alkaline Water Company

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.

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.

Contact Information

The Alkaline Water Company Inc.
5524 North 51st Avenue
Glendale, Arizona 85301
Telephone: 480-582-3600
Website: www.thealkalinewaterco.com
Email: IR@thealkalinewaterco.com

View original content:https://www.prnewswire.com/news-releases/the-alkaline-water-company-finalizes-strategic-equipment-acquisition-302433917.html

SOURCE The Alkaline Water Company, Inc.

FAQ

How many restricted shares did The Alkaline Water Company issue for the equipment acquisition?

The Alkaline Water Company issued 34,000,000 restricted shares subject to Rule 144 and a 12-month lock-up period for the equipment acquisition.

What are the expected benefits of WTER's equipment acquisition?

The acquisition aims to provide control over production lines, reduce production costs, improve margins, increase supply chain reliability, and deliver operational efficiencies starting in the current fiscal year.

When was the Letter of Intent for WTER's equipment acquisition announced?

The Letter of Intent for the equipment acquisition was announced on February 13, 2025.

How will the equipment acquisition impact WTER's cash position?

The acquisition preserves WTER's cash position as it was structured through restricted shares with a 12-month lock-up period, with no impact on current trading float.