MADONA, LATVIA--(Marketwired - July 05, 2016) - Adaiah Distribution, Inc. (OTCQB: ADHH) announced today that it has entered into a Letter of Intent with Angelini Trading Company Inc., a Santa Monica, California-based corporation ("Angelini"), whereby ADHH will acquire all of the issued and outstanding shares of Angelini from Angelini's shareholders in exchange for 3 million shares of ADHH's common stock.
ADHH intends to operate Angelini as a wholly-owned subsidiary and add it to its existing business operations and business model. The transaction will be regarded a private transaction and the shares will be issued as restricted shares under Regulation D. ADHH and Angelini intend to enter into a written definitive agreement and complete the acquisition of Angelini on or before August 1, 2016. The completion of this transaction is subject to both parties completing its due diligence review of the other.
ABOUT ANGELINI TRADING COMPANY
Angelini Trading Company is a California-based distributor of premium affordable wines that are custom made for the U.S. consumer market by one of the largest wine producers in Italy. Angelini Trading is selling these wines under the Caponero brand and is already redistributing its wines at retail locations in several key markets. The company has an exclusive long-term agreement in place with the winery to supply all the wine Angelini can sell, and another agreement in place with an advertising and marketing company that will place the wines in thousands of retail locations nationwide, including both well-known chain stores as well as locally owned markets.
Angelini was formed with the objective to source the highest level products available from the Italian peninsula for export to the rest of the world, with primary focus on the USA market. Angelini Trading was formed by Richard Angelini and his cousin, Robert Adamo in 2012. The Angelini and Adamo families have been merchants and artists since the 1600's and Roberto had always wanted to launch a business based on Italian food products. Richard is a former lawyer who was born in Italy, speaks Italian, and has previously owned and operated a chain of food establishments as well as numerous auto dealerships and a finance company. Mr. Angelini will remain on board as the President and Chief Operating Officer of the subsidiary.
Angelini is also announcing the early distribution rollout of its Caponero wines has exceeded initial expectations. As of May 31, 2016, Caponero wines have been delivered into 245 retail locations, including not only the 7Elevens, Circle Ks, Stop & Saves and dozens of privately owned liquor and convenience stores originally reported, but also now including Citgo, Food Marts, Stop N Go, and additional local outlets.
Angelini's distribution model requires that each new store place a minimal initial order of at least two cases of Caponero wine, followed by a mandatory minimal reorder of at least two additional cases two weeks later. In return, Angelini also provides each store with advanced marketing tools and training through its distribution partner Moblty, to further ensure both initial and repeat sales. Angelini expects to have its Caponero wines available in at least 700 stores by the end of July, with many more to follow. These initial 700 distribution centers alone are conservatively projected to sell 16,000 cases of wine annually, generating annual sales of $1.36 million and annual gross profits of $0.504 million. And of course Angelini plans to continue to add additional outlets beyond these well into the future.
Regarding this announcement, Angelini President Richard Angelini commented, "We are happy but not surprised that the initial launch of our Caponero wines has exceeded our original conservative projections, and that we can now revise our expectations upward. We owe our success not only to the quality of our wines but also to the exceptional efforts of our marketing partner Moblty. Moblty has had great success in the past, best known for its outstanding rollout of 5-Hour Energy, and has worked with us to create a marketing approach that is uniquely powerful in the wine and spirits industry. We expect more big things to come."
Safe Harbor Statement: This release contains forward-looking statements with respect to business operations and results of Adaiah Distribution Inc., which involves risks and uncertainties. Actual future results could materially differ from those discussed. Adaiah intends that all statements included herein, including those referring to future revenues and earnings, be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.