The brewing sector has slowly but surely come into the focus among investors once again as life has gone back to normal for vast majorities following the disruptions caused by the coronavirus pandemic. There are many companies to choose from if you are looking to invest in the sector and one of the companies that you could do well look into at this point is 1812 Brewing Co (OTCMKTS:KEGS).
Trading Data
On Tuesday, KEGS stock ended flat at $0.0006 with more than 89.89 million shares, compared to its average volume of 42.69 million shares. The stock moved within a range of $0.0005 – 0.0008 after opening trade at $0.0006.
About The Company
1812 Brewing not only operates but also investors in companies which are involved in the fast growing craft beer industry. The business model of 1812 Brewing Co is quite simple. It seeks to create a network of craft breweries across the United States and then bring about individual brand growth at the local, regional and national levels.
In addition to that, the creation of such a network is also expected to bring about significant economies of scale for 1812 Brewing Co as well. The company is looking to create the network through its own investments and at the same time, it seeks to maintain the respective brand appeal of the individual breweries. In essence, it wants to act as an incubator which can bring about considerable growth to the craft beer industry.
1812 Brewing Company in Discussions to Restructure Remaining Convertible Debentures
On Tuesday, the company was actually in the news after it made an announcement with regards to the restructuring of convertible notes. 1812 Brewing Co announced that it was locked in discussions with many third parties for the restructuring those notes which bear a face value to the tune of as much as $13 million.
The Chief Executive Officer and Chairman of the company Tom Scozzafave spoke about the situation as well. He noted that the company needed to get rid of the notes or reduce them for it to move forward as a business. He went on to state that he hoped that the discussions with the third parties led to a favorable outcome for 1812 Brewing Co.
On the other hand, the CEO also went on to speak about the steps that 1812 Brewing Co would take in order to neutralize the effect on any fresh share issuance. He noted that in order to balance the situation in that eventuality, he would cancel as many as 500 million shares that he personally held in 1812 Brewing Co. Once the cancellation of that magnitude takes place then the total number of shares eliminated from Scozzafava’s holdings would come to a total of as much as 1 billion.
As it happens, the company has been working on the elimination of debt for quite some time. For instance, back on June 28, 2022 the company had announced that it had managed to repay a pair of variable price convertible debentures. The aggregate of the sum that had been repaid came up to around $300,000. The money had been raised by 1812 Brewing Co by way of a fixed price Regulation A offering. It now remains to be seen how 1812 Brewing Co navigates the next stage of debt restructuring.
Technical Data
KEGS stock is trading below the 20-Day and 50-Day Moving averages of $0.0007 and $0.0010 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0038. The company has a total market capitalization of $2.24 million.
