Finance 

Kona Gold Beverage Inc. (OTC:KGKG) Stock In Focus After Debt Reduction

Ankit Singhania

Companies that make announcements with regards to significant efforts for reducing debt and improving financial capabilities almost always come on the radars of investors. On Wednesday it was Kona Gold Beverage Inc. (OTC:KGKG) that came on to the news cycle and announced that it had made considerable headway in cutting down the debt burden and boosting financial stability.

In the news release yesterday, the company announced that its management team had been successful in paying off one of the high-interest-carrying loans that had been taken from MCA (Merchant Cash Advance) companies in 2023. The original amount of the loan was $312750. It was also noted that the only two payments remained on the second MCA loan, which had originally been $274000. The company stated that the moves represented significant steps towards financial recovery and eventual growth.

However, that was not all. Kona Gold Beverage also announced that it had been successful in negotiating an agreement with the party, which held a $260000 line of credit through a stock exchange agreement in place of a direct payment. The shares, which would be part of the agreement, would be subjected to a two-year hold period. The hold period would help in providing more stability and be in alignment with the long-term growth interests of the shareholders.

Under the guidance of the previous management, Kona Gold Beverage had run up considerable debts, and that had proven to be a major challenge for growth. The current management team is focused on strengthening the balance sheet and providing the company with the basis to be more successful. The primary goal of Kona Gold Beverage is to further boost its financial position, generate fresh investments, and bring in more opportunities. It was also revealed that the management was in discussions with its biggest debt holder for the complete elimination of its debt. That was described as the final piece of the debt reduction strategy jigsaw for Kona Gold Beverage.