Actionable news
All posts from Actionable news
Actionable news in KO: COCA-COLA COMPANY,

Small-Time Kombucha Maker Lands A Beverage Whale To Steer The Ship


Former Coca-Cola President (Latin America) & Number Two Executive At Anheuser-Busch InBev Now Calls The Shots.

Previous Guidance of 63% Revenue Growth for 2016 Could Be Raised Significantly.

Bucha, Inc. Was Cash-Flow Positive As Of September 8th.

For a small company that's only been public for less than two years, Bucha, Inc. (OTCPK:ABRW) has spent that time trying to figure out who they are. What started out as a micro-brewer of several award winning craft beers, formerly known as American Brewing Company, Inc. until a couple of days ago per Friday's PRE 14C, is now the maker of Kombucha, ditching the stagnant and highly competitive craft beer category for the opportunity to focus on the hyper-growth Kombucha space, a healthy, fermented tea-based beverage, which is the fastest growing functional beverage, with sales expected to soar from $600 million in 2015 to $1.8 billion by 2020.

The company raised slightly over $1 million in a non-traditional self-IPO priced at .50 cents, thus initially going public in a clean manner, without baggage that usually plagues companies on the OTC thanks to the typical reverse merger that involves a former failed company, accompanied by plenty of shenanigans along the way.

IPO proceeds were used to expand capacity with the idea of also acquiring other small micro-brewers, but their plans quickly changed when an opportunity arose that the company couldn't pass up. ABRW was approached by Chuck Santry and told that a Kombucha maker might be for sale, with a fabulous product to boot, as it was likely selling itself due to problems the previous management was having like many small entrepreneurial companies. After executing due diligence, American Brewing acquired the assets from B&R Liquid Adventures, LLC, previous messes involving production were cleaned up and the purchase price was a serious bargain considering the transaction resulted in just 26% dilution for an almost instant increase of 300% in revenues. Stock was issued at .33, but with a shareholder friendly 18-month leak-out provision along with $240K in cash and a $140K note. The company also sold its micro-brewery operations to pay down most of the debt and focus solely on Kombucha.

Who is Chuck Santry, the man that led American Brewing to the acquisition...