HICKSVILLE, NY--(Marketwired - Dec 9, 2016) - Long Island Iced Tea Corp. (NASDAQ: LTEA) (the "Company"), a growth-oriented company focused on the ready-to-drink ("RTD") tea segment in the beverage industry, today announced that it has reached an agreement to acquire the ALO Juice® beverage brand and trademark rights from The Wilnah International, LLC ("Wilnah") for a purchase price of 5,000 shares of the Company's common stock.
The closing of the transaction is subject to customary conditions, and is expected to occur in the first quarter of 2017.
The Company has acted as a distributor of ALO Juice® since February 2016 and has sold nearly $1 million of ALO Juice® to date. The Company believes the acquisition will further enable it to meet growing consumer demand for better-for-you beverages. Philip Thomas, Chief Executive Officer of the Company, stated, "We are continuing to see a shift towards healthier beverages and ALO Juice® offers a product which is aligned with this movement."
Mr. Thomas further commented, "ALO Juice® is a quality brand. We are excited that it will mark the first brand acquisition in our five-year history."
ALO Juice® is a NARTD functional beverage made from juice derived from the aloe plant known as aloe vera. ALO Juice® sources its aloe plants from harvests in Thailand. The plants are exported from there to South Korea where they are processed in a unique whole leaf manner to ensure the nutritional and heath benefit are maintained from the plant all the way through to the bottling process. ALO Juice® is packed in 0.5 liter and 1.5 liter bottles, with a wide variety of flavors including Original, Mango, Pomegranate, Pineapple and Raspberry.
Aloe vera juice contains nutrients which include vitamins A, C, E, and B12, as well as minerals like potassium, zinc, and magnesium.1 It also provides antioxidants, helps to balance metabolism2, and supports normal circulation and blood pressure.3
About ALO Juice®
ALO Juice® has been imported from Korea and distributed in New York City since 2008. In 2012, ALO Juice® expanded into the Florida marketplace. ALO Juice® is distributed in 0.5 liter and 1.5 liter bottles, with flavors including Original, Mango, Pomegranate, Pineapple and Raspberry. It is owned by The Wilnah International, LLC and headquartered in Fort Lee, New Jersey. For more information, visit www.alojuice.com.
About Long Island Iced Tea Corp.
Headquartered in Long Island, New York, Long Island Iced Tea Corp. operates in the ready-to-drink tea segment of the beverage industry. The Company has developed non-alcoholic, premium iced tea bottled beverages made with quality ingredients that are offered at an affordable price. The Company is currently organized around its flagship brand Long Island Iced Tea®, a premium, ready-to-drink iced tea sold primarily on the East Coast of the United States through a network of regional chains and distributors. The Company's website is www.longislandicedtea.com.
Forward Looking Statements
This press release includes statements of the Company's expectations, intentions, plans and beliefs that constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to come within the safe harbor protection provided by those sections. These statements, which involve risks and uncertainties, relate to the discussion of the Company's business strategies and its expectations concerning future operations, margins, sales, new products and brands, potential joint ventures, potential acquisitions, expenses, profitability, liquidity and capital resources and to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements include any statement that does not directly relate to a historical or current fact. You can also identify these and other forward-looking statements by the use of such words as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "thinks," "estimates," "seeks," "predicts," "could," "projects," "potential" and other similar terms and phrases, including references to assumptions. These forward looking statements are made based on expectations and beliefs concerning future events affecting the Company and are subject to uncertainties, risks and factors relating to its operations and business environments, all of which are difficult to predict and many of which are beyond its control, that could cause its actual results to differ materially from those matters expressed or implied by these forward looking statements. These risks include the possibility that the acquisition does not close, including due to the failure to achieve various closing conditions, the Company's history of losses and expectation of further losses, its ability to expand its operations in both new and existing markets, its ability to develop or acquire new brands, its relationships with distributors, the success of its marketing activities, the effect of competition in its industry and economic and political conditions generally, including the current economic environment and markets. More information about these and other factors are described in the reports the Company files with the Securities and Exchange Commission, including but not limited to the discussions contained under the caption "Risk Factors." When considering these forward looking statements, you should keep in mind the cautionary statements in this press release and the reports the Company files with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and the Company cannot predict those events or how they may affect it. The Company assumes no obligation to update any forward looking statements after the date of this press release as a result of new information, future events or developments, except as required by the federal securities laws.
1. Radha, M. H. & Laxmipriya, N.P. Evaluation of biological properties and clinical effectiveness of Aloe vera: A systematic review. Journal of Traditional and Complementary Medicine. 5 (1).
2. Foster, M. et al. Evaluation of the Nutritional and Metabolic Effects of Aloe vera. In I. Benzie & G. Wachtel-Galor (Eds.), Herbal medicine: Biomolecular and clinical aspects (2nd ed.).
3. Choudhary M, Kochhar A, Sangha J. Hypoglycemic and hypolipidemic effect of Aloe vera L. in non-insulin dependent diabetics. J Food Sci Technol. 2014 Jan; 51(1): 90-96. Published online 2011 Jul 16. doi: 10.1007/s13197-011-0459-0.