LOS ANGELES, CA--(Marketwired - January 12, 2017) - Upper Street Marketing (OTC PINK: UPPR) After making a series of powerful talent, distribution and brand acquisitions in the alcoholic beverage category during Q4 2016, Upper Street Marketing, Inc. (OTC PINK: UPPR) today announced its 2017 growth strategy.
During Q4 2016, Upper Street recruited two adult beverage industry giants from Mike's Hard Lemonade. Mike's Hard Lemonade former U.S. chief financial officer (CFO) Feza Sanigok is now serving as Upper Street CEO and interim CFO. Mike's Hard Lemonade former brand executive Chris Pfeifer is now serving as Upper Street's chief operating officer (COO) and chief marketing officer (CMO).
In the same period, Upper Street also acquired Ennoble Beverages, the exclusive sales and distribution rights holder to the rapidly growing Frank's RedHot progressive adult beverage portfolio.
To enable the rapid growth allowed by these acquisitions, Upper Street plans to raise $3.5 million in additional capital during Q1 of 2017; $2 million will come in the form of an operating line of credit secured against receivables, for which the company has already received a preliminary approval. The other $1.5 million will come in the form of equity capital, with $250,000 available currently, and the remaining $1.25 million expected by April 30.
The cash infusion will allow the company to meet demand in its rapidly growing alcoholic beverage vertical, which includes expected shipments of between 100,000 and 200,000 cases of Frank's RedHot beverages. These shipments alone are expected to generate between $2.2 million and $4.4 million in revenue.
At the same time, Upper Street Marketing will pursue the strategic acquisition of a minimum of two complementary brands in related underdeveloped, high-growth markets. The company has also expanded the Ennoble Beverages team with a seasoned sales executive.
Finally, Upper Street is in negotiations to acquire a beverage production facility. Ownership of the facility will allow Upper Street and its subsidiaries to produce the brand's existing products and to launch new proprietary products currently under development. The negotiations are expected to be complete by April 30, and the production facility is expected to generate $3 million in annual revenue.
"Last year, we laid the groundwork for rapid growth in the adult beverage market segment," said Upper Street director Gordon McDougall. "This year, we're starting by raising capital to expand our presence in that segment, then introducing efficiencies of scale and cost-effectively delivering products with growing market demand."
About Upper Street Marketing:
Upper Street Marketing combines decades of tactical branding experience with research-based intelligence to uncover, invest in and expedite the growth of companies displaying outstanding management and ROI potential. Upper Street Marketing is committed to its shareholders first and ascribes to a business ideology promoting transparency, visibility, growth and value.
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations for acquisitions and their performance thereafter. The terms and phrases "expects," "would," "will," "believes" and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Upper Street Marketing, Inc. in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Upper Street Marketing, Inc. believes are appropriate in the circumstances. Many factors could cause Upper Street Marketing, Inc.'s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Upper Street Marketing, Inc. that may cause actual results to differ are set forth in Upper Street Marketing, Inc.'s periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Upper Street Marketing, Inc.'s forward-looking statements. Upper Street Marketing, Inc. has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.