As part of that agreement, subject to shareholder approval, Aqua Clara will complete a 1 for 10 reverse stock split of its common stock. The Company will also ask shareholders to approve a resolution to rename the Company BEVsystems International, Inc. and trade under a new stock symbol. Financial terms of the stock-based transaction were not disclosed.
Aqua Clara has scheduled a shareholder meeting at 10 a.m. Tuesday, Feb. 11, 2002, to vote on the two items.
Aqua Clara's stock is traded on the OTC:BB under the symbol AQCB. When the merger was announced AQCB was trading in the $.06 range and is now trading between $.09 and $.10, a gain of approximately 40 percent.
The transaction will give Aqua Clara the leverage of BEVsystems' internationally-distributed bottled water brand, Life O2 and the proprietary Life O2 SuperOxygenation process. Aqua Clara will also acquire technology with twenty-five patents issued in the United States and foreign countries. The technology allows BEVsystems to infuse its Life O2 brand and global co-branded products with up to 15 times (1,500 percent) more oxygen than ordinary bottled water.
Life O2 and other co-branded products that utilize the Life O2 SuperOxygenation process are available in 22 countries worldwide. Since introduction, Life O2 has sold more than 42 million bottles to international consumers. BEVsystems' equipment, which infuses bottled water with medical grade oxygen, is installed in 11 international bottling plants.
Life O2 was launched domestically last October by BEVsystems in South Florida at the International Bottled Water Association trade show. The company said acceptance of the product has been outstanding and that they have been adding approximately 60 distribution points per week since the launch.
Following the transaction, the new BEVsystems International, Inc. (formerly Aqua Clara) will shift much of the production of Life O2 SuperOxygenated Water to the Aqua Clara bottling facility, located on 2.1 acres in Clearwater, Florida. Increased volume at the facility will improve operating efficiencies and reduce production costs for all bottled water brands produced by the new company. The state-of-the-art facility, with a capacity of 250 bottles per minute (500ml to 1 liter) uses reverse osmosis to super-purify water. The Clearwater facility will also become the central location for the manufacture and assembly of BEVsystems' proprietary Life O2 SuperOxygenation production equipment.
Aqua Clara has an extensive U.S. distribution system. The company is a master distributor for GNC Nutrition Centers, and Aqua Clara is the Official Water of the State of Florida's "FLA USA" tourism program. Aqua Clara's existing domestic strength will be combined with the extensive international market penetration already enjoyed by Life O2. BEVsystems is currently launching Life O2 SuperOxygenated Water in the South Florida market, and plans to introduce Life O2 in other U.S. markets soon.
"The synergies between the two companies are obvious," said Douglas Cifers, Aqua Clara chairman. "We'll now be able to offer two great brands in the oxygen-enhanced water category, clearly one of the fastest growing segments of the already burgeoning bottled water industry."
G. Robert Tatum, the current chairman and CEO of BEVsystems International, will become Chairman & CEO of the combined entities. John C. Plunkett, currently president & CEO of Aqua Clara, will become operations manager of the new BEVsystems, responsible for worldwide operations and new product development.
"The combination of Aqua Clara's outstanding management and production facilities along with our innovative marketing techniques will greatly heighten our role as the dominate player in the oxygen-enhanced water category," said Tatum. "The manufacturing efficiencies we will achieve will also allow us to be even more competitive at various retail levels."
Tatum added that using university-based research, product sampling, sports events and other tools, BEVsystems has educated consumers worldwide about the benefits of oxygen-enhanced water. Tests conducted with Life O2 SuperOxygenated Water have shown improved athletic performance, increased energy, and greater awareness and concentration.
Source: Businesswire
