BEVsystems Internationa,l Inc. announced that it has made significant progress towards restructuring its business and reducing its corporate overhead. The company reduced compensation expenses by $1.4 million annually and eliminated more than $1.8 million in accounts payable and accrued liabilities. Additionally the company announced that it entered into agreements for the sale of their manufacturing plant in Clearwater, Fla. When completed this will reduce long-term debt by $720,000.
G. Robert Tatum, the company's chief executive officer hailed these events as "significant progress" towards moving the company forward under its previously announced restructuring plans. Tatum went on to say that "while there are still many additional challenges as well as some litigation issues that we are currently negotiating, we believe we are in the final phases of getting the company back on track."
BEVsystems now has a co-packer operating the bottling plant. As a result of out-sourcing manufacturing, the cost of goods has decreased by 55 percent. Under this new agreement, the first ocean-going container of Life O2 was produced last week by the co-packer, and shipped to Panama.
The company has used both cash and stock in negotiating with creditors. Some have converted from debt to equity and many of these agreements call for payouts in restricted shares at significant discounts or payouts over time. The company stated, that it used its best efforts to not create significant pressure on its stock by the methodology it employed in these negotiated settlements that have resulted in either the issuance of restricted stock or the issuance of shares on a monthly basis which shall be covered under a pending S-8 registration statement. This registration statement, to be filed in the next few days, shall also include amongst other expenses, future professional fees to the company's attorneys, out-sourced services and other consultants.