Attached files
Exhibit 99.1
Hispanica International Obtains Financing Commitments to Close its
Acquisition of Giant
Beverage
Acquisition of New York-Based Giant Beverage Expected to Add $4M in
Revenues on a Yearly Basis
NEW
YORK, New York- October 3, 2017- Hispanica International, Inc.
(OTCQB: HISP) a brand accelerator company focused on proprietary
brands in the beverage and snack industry, today announced that it
has signed agreements with Shircoo Inc. and JH Brech, LLC, two
existing shareholders, to provide debt financing to finance the
company’s proposed acquisition of New York-based Giant
Beverage Company, Inc., and provide additional working
capital.
Hispanica
intends to invest the new capital to further expand its portfolio
of brands with continued sales and distribution as well as through
strategic acquisitions of key assets to align with boosting
proprietary distribution channels, as well as to retire certain
convertible debt. In particular, the additional funds will enable
Hispanica to close the acquisition of all outstanding shares of
Giant Beverage.
The
acquisition is expected to close within the current quarter
following customary closing conditions.
“The
influx of capital has come from existing shareholders who are
intimate with both our vision and financial standing, and
represents their bullish optimism regarding the company’s
future. This investment enables us to move forward without having
to further dilute our existing shareholders,” stated
Hispanica Chairman and CEO Fernando Oswaldo Leonzo. “The
working capital provides us with the resources to swiftly execute
on our plans, including our ability to improve our balance sheet
and increase revenues organically and through
acquisitions.”
Hispanica
continues its explosive retail growth, expecting immediate access
to over 500 additional retailers in New York City alone, through
the Giant Beverage acquisition. In addition, Hispanica expects to
see a 100% increase in net revenue for fiscal 2018 to over $7M. The
company’s network of retailers and distributors has grown
more than 100% year over year, now topping over 2,000 locations
throughout the United States. The goal is to have a direct and
indirect reach of 10,000 retailers by the end of 2018.
“The
acquisition of Giant Beverage is an example of the type of asset we
can acquire that will increase our direct footprint in perhaps one
of the most competitive but lucrative markets in the U.S,”
explained John Romagosa, President of Hispanica. “We’re
excited about the present and future; more announcements will be
forthcoming.”
The
global beverage industry is expected to reach an estimated $1.9
trillion by 2021 and Hispanica anticipates a robust strategy to
leverage the major drivers (growing urbanization and disposable
income) for growth within this market segment. With the market
forecast to grow at a CAGR of 3.0% through 2021, Hispanica is in
position to take advantage of this dramatic market
shift.
For
informational information regarding the proposed financing, readers
are referred to our Current Report on Form 8-K proposed to be filed
with the Securities Exchange Commission on October 3,
2017.
About Hispanica International Delights of America,
Inc.
Hispanic
International Delights of America, Inc. (HISP) is a public company
founded in 2013. Formed as an ethnic food and beverage company,
HISP has leveraged innovation to re-shift its focus into a brand
accelerator with the goal of expanding beyond ethnic flavors. The
HISP accelerator backs beverage/snack companies, which it can
acquire, by building a proprietary distribution platform to enhance
its own brands and position for mass market entry.
Based
in New York, HISP plans to continue investing in companies focused
primarily in the beverage sector, while adding snacks to their
portfolio over time. HISP will continue to focus on ethnic flavors,
as well as health and wellness-related products, consumer snacking,
grocery and health trends. HISP will continue to accelerate
beverage and snack companies at different stages, from start-ups to
established brands.
HISP is
also committed in building long-term relationships with its
consumers by offering superior, high quality products at
competitive prices. HISP is headquartered in New York and currently
has distribution operations in New York City Tri-State Region,
Washington DC Metro Area, as well as in Los Angeles and the
Northern California Region.
For
more information on Hispanica International Delights of America,
Inc. please visit http://www.hispanicadelights.com
Forward-Looking Statement
This
press release contains forward-looking statements. These statements
relate to future events or future financial performance and are
subject to risks and uncertainties. In some cases, you can identify
forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "feel,"
"estimate," "predict," “hope,” the negative of such
terms, expressions of optimism or other comparable terminology.
These statements are only predictions. Actual events or results may
differ materially. Factors that could cause actual results to
differ from those contained in our forward-looking statements
include, but are not limited to our ability to gain access to
retail stores for our products, our ability to obtain adequate
financing to provide for our continued growth, fund our acquisition
strategy, and finance our strategic objectives, and the other risks
identified from time to time in our quarterly reports on Form 10-Q,
our annual report on Form 10-K, and other reports filed with the
Securities and Exchange Commission. Although we believe that the
expectations reflected in our forward-looking statements are
reasonable, we cannot guarantee future results, and undertake no
obligation to update any of these forward-looking
statements.
Investors
and Corporate Relations
Please
Contact: corporaterelations@hidainc.com
info@hida.com
1(866)
928-5070