1812 Brewing Company Inc. (OTCMKTS:KEGS) has announced finalizing an equipment purchase agreement and securing private equipment financing to acquire a five-head can filling and labeling line from industry partners Wild Goose Filling and Ska Fabricating.
Trading Data
On Wednesday, KEGS stock slumped 12.50% to $0.0007 with more than 192.77 million shares, compared to its average volume of 56.09 million shares. The stock moved within a range of $0.0006 – 0.0008 after opening trade at $0.0008.
1812 Brewing Company enters into a purchase agreement for five-head can filler and labeling line with Wild Goose Filling and SKA Fabricating
The canning line is expected to be installed and operational in 2022. After commissioning the canning line, the company will have the ability to package its beers in the manner favored by consumers, be it bottles, cans, or drafts.
Chairman and CEO Tom Scozzafava, says that once the line is operational, the company can opt for packaging in a way preferred by both consumers and distributors. For instance, some beers, like War of 1812 Amber Ale, were available in both cans and bottles. After several discussions with Canadian distributors, it was clear that canning is required. Due to their proximity to Canada, and renowned brands like “War of 1812 Amber Ale” and “Thousand Islands IPA,” canning opens the Canadian market right up.
He further elaborates that the company now has a certain amount of financial protection from volatility in either the glass or aluminum markets with respect to both prices and availability. Now that the company can package in either cans or bottles, the opportunities to contract brew and package for other breweries will be remarkably boosted.
Key Quote
Chairman and CEO Tom Scozzafava stated, “After the line is operational, the Company can package the way both consumers and distributors prefer. I envision certain beers, such as War of 1812 Amber Ale, being packaged in both cans and bottles.” Mr. Scozzafava continued, “Additionally, this also provides the Company with a certain amount of financial protection from volatility in either the glass or aluminum markets with respect to both prices and availability. Also, with the Company able to package in either cans or bottles, the opportunities to contract brew and package for other breweries will be enhanced significantly.”
Technical Data
KEGS stock is trading below the 20-Day and 50-Day Moving averages of $0.0006 and $0.0006 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0027.
