Kona Gold Beverages Inc (OTC:KGKG) Stock In Focus After Acquisition News
The news about a key acquisition can often prove to be a reason for considerable interest in a company from investors and hence, it is likely that the Kona Gold Beverages Inc (OTC:KGKG) stock could come into focus this morning. Kona Gold Beverages operates in the form of a holding company and best known for its work in the healthy and functional beverages sector.
On Tuesday the company came into the news cycle after it announced the completion of the acquisition of Surge Distribution LLC from Loud Beverage Group Inc. In the news release the company announced that the strategic move was another demonstration of Kona Gold Beverages’ commitment to strengthening its distribution capacities and thereby expanding its presence in the fast growing functional beverage space.
In this situation, it may be a good idea to get a bit of an idea about Surge Distribution as a company. Surge is best known for its strong presence in the distribution space and currently it is on track to generate revenues of $5 million in the 2024 fiscal year. Thanks to the landmark acquisition, it would be possible for Kona Gold to integrated Surge into its fold and turn it into a fully owned subsidiary unit.
The move had been made by the company in order to expand the reach of its products as much as possible and for providing its clients with strong distribution services. As per the provisions of the agreement, Kona Gold would complete the acquisition through $1.5 million worth of preferred stock meant for Loud Beverage Group, the parent company of Surge. However, that was not all. It was also noted that the shareholders of Loud Beverage were going to get the advantage of the 1:1 dividend related to the Kona Gold preferred stock. It remains to be seen if the stock gets any action today.
