In the past decade or so, craft beer has gone from a niche interest to a fully-fledged industry and now there are actual companies that operate in that sector. One of those companies is 1812 Brewing Company Inc (OTCMKTS:KEGS), which is regarded as a major investor and operator in the fast-growing craft beer industry.
On Wednesday, KEGS stock moved down 4.55% to $0.0010 with more than 13.93 million shares, compared to its average volume of 18.10 million shares. The stock moved within a range of $0.0010 – 0.0012 after opening trading at $0.0012.
About The Company
The company has a unique strategy in place to spark growth. It is looking to build up a network of craft breweries across the nation for the purpose of developing individual brands at the national, regional, and local levels. The purpose of the building of this network is to make sure that some of the economies of scale could be shared across the network. Hence, it can be said that the business model is innovative and the industry has room for considerable growth as well.
However, the situation was not particularly great for the 1812 Brewing Company stock on Wednesday as it witnessed a selloff and ended the day with a decline of as much as 5% as a consequence.
1812 Brewing Company, Inc. Releases Shareholder Update
Yesterday the company was actually in the news after its shareholders were provided an update from the Chief Executive Officer and Chairman of the company Thomas W Scozzafava. In light of the fall in the stock yesterday, it may be a good idea for investors to consider taking a look at some of the key highlights from the updates in the letter issued yesterday.
In the letter, the CEO provided a rundown of some of the milestones that the company managed to hit in the past and also provided a glimpse into the plans for the future. He noted that not too long ago the 1812 Brewing Company managed to acquire a high-speed bottling, filling, and labeling station that can produce as many as 1500 bottles an hour. It should help in boosting productivity by as much as 100%.
The company was also looking to restructure the notes that were held by the biggest convertible note holders. Additionally, the company was also looking to make some major acquisitions and had employed the services of the mergers and acquisitions investment bank Tully & Holland for the same.
KEGS stock is trading below the 20-Day and 50-Day Moving averages of $0.0012 and $0.0014 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0049.