Minerco's Level 5 Increases Equity Position in Avanzar Sales and Distribution
March 26 2015 - 9:25AM
Minerco Resources, Inc. (OTC:MINE), parent company of Level 5
Beverage Company, Inc., the makers of VitaminFIZZ®, announced that
Level 5 has exercised its option to purchase an additional 21%
equity stake in Avanzar Sales and Distribution, LLC in California.
This option increases Level 5's equity of Avanzar from 30% to 51%.
"Part of our strategy to deliver greater long term value to
shareholders is to increase our stockholders' equity by acquiring
cash flowing assets," said V. Scott Vanis, Minerco's Chairman and
CEO. "A larger stake in Avanzar is another step in achieving this
goal. Avanzar has made huge strides in every aspect of growing the
business since our initial partnership began six months ago.
Furthermore, Avanzar was and is instrumental in growing VitaminFIZZ
locations in Southern California."
Avanzar is a leading full service broker and distributor of
world-class consumables and products. At the time of Level 5's
initial acquisition in October 2014, Avanzar serviced 3,200
locations in the Southern California retail marketplace. Today,
Avanzar has a footprint of over 5,300 locations including a 25%
expansion in the San Diego metro market. These additional accounts
include new contracts with Stater Bros., Walmart and Winco.
Bill Juarez, the President of Avanzar, stated, "We couldn't be
more pleased with our partnership with Minerco and Level 5 and the
organizational improvements that we have accomplished over these
past 6 months. We know we are well positioned for exponential
growth through this summer's selling season and into 2016."
Level 5's increased ownership of Avanzar was made in affiliation
with Minerco, the parent company of Level 5. Under the terms of the
deal, Level 5 will pay a fixed price of $400,000 in structured
payments throughout 2015. The entire purchase price ($400,000) was
entered as a Minerco-owned asset on the day the Exercise of the
Option Agreement was executed. Level 5 also holds a second option
to purchase up to 75% of the total equity of Avanzar at a
predetermined price or a fixed multiple of revenues.
The use of proceeds is to be deployed, in part, to expand
Avanzar's distribution and brokerage business both in locations and
key accounts. Additionally, proceeds will also be used to expand
its recently launched Merchandising and Sampling Department, which
is expected to grow rapidly due to the massive demand for
professional merchandising and sampling in Southern California. The
proceeds will also be used to strategically and methodically pay
down debt held on the Avanzar books.
About Avanzar
Headquartered in Brea, California, Avanzar Sales and
Distribution specializes in working with early stage, fast moving
consumer brands to develop and implement sales and distribution
strategies. The Company operates a full service brokerage which
includes account management, trade development and logistics
services as well as in house DSD operations throughout Southern
California. Avanzar distributes products to some of the most
trusted retailers in the United States, including Kroger,
Albertsons, HEB, Golub (Price Chopper), Whole Foods, Walgreens,
7-Eleven, Tesoro, Circle K, Chevron, Kmart, Walmart, Stater Bros.,
Gelson's and Winco. www.avanzarsales.com
About Minerco Resources, Inc.
Minerco Resources, Inc. (OTC:MINE), is the parent company of
Level 5 Beverage Company, Inc. (Level 5), a specialty beverage
company which develops, produces, markets and distributes a
diversified portfolio of forward-thinking, good-for-you consumer
brands. The Minerco - Level 5 brand umbrella includes:
VitaminFIZZ®, Vitamin Creamer®, Coffee Boost™ and The Herbal
Collection™. http://minercoresources.com
Public Disclosure
Details of the Company's business, finances and agreements can
be found as part of the Company's continuous public disclosure as a
fully reporting issuer under the Securities Exchange Act of 1934
filed with the Securities and Exchange Commission's ("SEC") EDGAR
database. For more information, please
visit: http://www.minercoresources.com. The above statements
have not been evaluated by the Food and Drug Administration (FDA).
These products are not intended to diagnose, treat, cure or prevent
any disease.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934 that are based upon current
expectations or beliefs, as well as a number of assumptions about
future events. Although we believe that the expectations and
assumptions upon which they are based are reasonable, we can give
no assurance that such expectations and assumptions will prove to
have been correct. Some of these uncertainties include, without
limitation, the company's ability to perform under existing
contracts or to procure future contracts. The reader is cautioned
not to put undue reliance on these forward-looking statements, as
these statements are subject to numerous factors and uncertainties,
including without limitation, successful implementation of our
business strategy and competition, any of which may cause actual
results to differ materially from those described in the
statements. We undertake no obligation and do not intend to update,
revise or otherwise publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of any unanticipated
events. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance that our
expectations will materialize. Many factors could cause actual
results to differ materially from our forward-looking
statements.
CONTACT: Media Contact:
Jason Grimley
Spelling Communications
323-309-8714
jasongrimley@spellcom.com
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