American Water Star Proposes Settlement With Laurus
January 19 2006 - 8:30AM
Business Wire
American Water Star Inc. (AMEX: AMW), today announced that the
company has sent a proposal to Laurus Master Fund in an attempt to
settle the current indebtedness. By letter dated Nov. 4, 2005,
Laurus notified the company that certain defaults have occurred and
are continuing under the Forbearance Agreement and demand for
payment was made in the amount of $6,694,875.93. Subsequently, the
company received from the Trustee, on behalf of Laurus, Notice of
Trustee's Sale and Statement of Breach of Non-Performance and
Notice of Election to Sell the Company's property and fixtures at
3910 East Weir Avenue, Phoenix, Arizona, at an auction to be held
on March 2, 2006. The terms of the proposed settlement submitted by
the company to Laurus are as follows: (1) $5,000,000 cash which
will be wired immediately upon closing of the refinancing of the
Phoenix property; (2) existing Laurus warrants to remain in effect
and priced as-is; and (3) the balance of the fees and interest in
the approximate amount of $1,600,000 will be repaid in either
options or warrants to purchase the company's common stock at a
price per share to be determined on the date of the wire transfer.
About American Water Star Inc. American Water Star Inc. ("AMW") is
a publicly traded company and is engaged in the beverage bottling
industry. Its product brands are licensed and developed in-house,
and bottled in strategic locations throughout the United States.
AMW's beverage products are sold by the truckload, principally to
distributors, who sell to retail stores, corner grocery stores,
convenience stores, schools and other outlets. At AMW, we believe
our great-tasting, new zero-sugar, zero-calorie flavored water
beverages have positioned us to capture a large share of the market
for healthy flavored waters. Our product line consists of three
branded beverages: Geyser Sport; Geyser Fruit; and Geyser Fruta.
Geyser Sport is a sugar-free, calorie-free, carb-free fruit
flavored beverage fortified with vitamins and calcium, offered in
eight different fruit flavors. Geyser Fruit is a non-carbonated
water with a low sugar content, also offered in eight different
flavors. Geyser Fruta is targeted to the Hispanic market and
includes authentic Latin-flavored beverages. Forward-Looking
Statements This press release may contain statements that
constitute "forward-looking statements" as defined under U.S.
federal securities laws. Generally, the words "believe," "expect,"
"intend," "estimate," "anticipate," "establish," "project" and
similar expressions identify forward-looking statements, which
generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from our historical experience
and our present expectations or projections. These risks include,
but are not limited to, acceptance of the company's proposal by
Laurus; the possibility of foreclosure upon our Phoenix plant and
equipment; our ability to meet our working capital needs to
continue operations; management's ability to seek additional
funding or potential merger and acquisition candidates; any
additional work that may be required for our financial statement
preparation of our 2005 third quarter report; the actual amount of
annual sales of AMW water; changes in economic conditions; changes
in the non-alcoholic beverages business environment, including
actions of competitors and changes in consumer preferences; our
ability to capture market share; the effectiveness of our
advertising and marketing programs; fluctuations in the cost and
availability of raw materials or necessary services; our ability to
avoid production output disruptions; our ability to achieve
earnings goals; regulatory and legal changes; our ability to
penetrate developing and emerging markets; litigation
uncertainties; and other risks discussed in our filings with the
SEC, including our Annual Report on Form 10-KSB, Quarterly Reports
on Form 10-QSB, and Current Reports on Form 8-K, which reports are
available from the SEC. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
any forward-looking statements to reflect current events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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