1812 Brewing Company Inc. (OTC:KEGS) Stock In Focus After Latest Update
There are some companies that are expected to come into focus this morning owing to significant developments, and one of those is possibly going to be 1812 Brewing Company Inc. (OTC:KEGS). The company came into focus on Tuesday after it announced that two of its products, Halles Bells Lager and Route 11 Lager, had both been approved for sale at Price Chopper Markets. It was a significant new development for the company and one that could help in the further growth of the business.
The Golub Corporation is the owner of Price Chopper Markets and operates a number of supermarket chains under different banners. Other than Price Chopper, it also operates Market Bistro and Market 32. The supermarket chains have a presence in the states of Massachusetts, New Hampshire, New York, Vermont, Pennsylvania, and Connecticut. In the news release, 1812 Brewing Company announced that both the beer variants are known for being crisp and light lager beers. They had been formulated as easy-to drink and affordable craft beers.
Route 11 Lager is made in the German style with some wheat and barley. It also offers a hint of lemon, and Price Chopper would offer a six-pack of 12-ounce cans for $6.99. Halles Bells is also a German-style lager, but it is not as dry as Route 11 and offers a more prominent body. A four-pack of 16-ounce cans would be offered for $7.99.
The company also revealed that the two beers had been approved to be sold at some stores located in St. Lawrence County and Jefferson. That would start the association. Tom Scozzafava, the Chief Executive Officer and Chairman of 1812 Brewing Company, spoke about the development too. He noted that both products had sold well in tests. He went on to note that Price Chopper already enjoyed strong sales for both cans and bottles of War of 1812 Amber Ale from the company. Hence, it made sense for the company to expand into other products offered by 1812 Brewing Company. He also stated that the company had the intention of taking its entire portfolio of offerings to more markets.
On August 2, the company entered the news cycle after it emerged that 1812 Brewing Company and Trillium Partners LP, its debt investor, had agreed mutually to cancel the 3 (a) 10 debt restructuring transaction at the end of the then-current partial debt paydown. The transaction had been approved by the court. On October 17 of last year, 1812 Brewing Company entered into a settlement agreement with Trillium, which was later approved by the Federal District Court of Maryland.
As per the terms of the agreement, the company agreed to the issuance of shares of its common stock to Trillium as per the rules of the 3(a) 10 exemption for the purpose of paying down the outstanding debts. The company then noted that, over several months leading up to the announcement, it had become untenable to stick to the rules of the transaction in full. Hence, it was agreed to terminate the transaction with the interests of both the company and its shareholders in mind.
