1812 Brewing Company Inc. (OTCMKTS:KEGS) announced on September 15, 2022, about entering into a non-binding Letter of Intent to acquire the assets and business of a New York State regional brewery and brew pub.
On Thursday, KEGS stock decreased 16.67% to $0.0005 with more than 27.13 million shares, compared to its average volume of 58.61 million shares. The stock moved within a range of $0.0005 – 0.0006 after opening trading at $0.0006.
1812 Brewing Company Enters Into Letter of Intent to Purchase Brewery/Brew Pub
1812 Brewing Company has recently announced about finalizing an equipment purchase agreement as well as securing private equipment financing to acquire a five-head can filling and labeling line from industry partners Wild Goose Filling and Ska Fabricating. The company has also received the Gold Medal in the Amber Ale category for the United States in the prestigious World Beer Awards. These global awards select the very best in all the international recognized styles, for awarding and promoting the world’s best beers to consumers and trade partners across the globe.
The terms of the acquisition, mentioned above, which include the final purchase price and releasing the target’s name, depend upon mutually agreed upon non-disclosure agreements. Tom Scozzafava, Chairman and CEO of 1812 Brewing Company, says that both parties are thrilled about the potential transaction. Each would give the other new retail outlets to showcase the other’s products outside their own, respective market. The company will leverage its new brewing, bottling, and soon-to-be canning infrastructure to explore growth and value with the target’s brands.
Tom Scozzafava, Chairman and CEO of KEGS, stated, “What I can say is both parties are excited about this potential transaction. Each would give the other new retail outlets to showcase the other’s products outside their own, respective market. “Furthermore,” Mr. Scozzafava continued, “on the hospitality side the combined companies would be far less seasonal, and 1812 Brewing Company would leverage its new brewing, bottling, and soon-to-be canning infrastructure to unlock growth and value with the target’s brands. If we can close this deal, it would be a win-win.”
KEGS stock is trading below the 20-Day and 50-Day Moving averages of $0.0006 and $0.0005 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0025. The company has a total market capitalization of $1.86 million.