TSX:FLOW - Post Discussion
Post by
Betteryear2 on Nov 16, 2023 7:30am
Flow Beverage Corp. Enters into Manufacturing Agreement
- Flow enters market for co-packaging of alcohol-based beverages
- Manufacturing agreement between Flow and BeatBox has five-year term with contractual take-or-pay commitments
- Flow to increase capacity of Aurora production facility to fulfill the manufacturing agreement through the addition of a fourth production line and further equipment financing with NFS Leasing
- Additionally, Flow enters into a $5,000,000 senior secured term loan with NFS Leasing to support the Company’s capital expenditure and working capital requirements
TORONTO--(BUSINESS WIRE)--Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (“Flow” or the “Company”) announced today that it has entered into a manufacturing agreement (the “Agreement”) with BeatBox Beverages (“BeatBox”), known as “The World’s Tastiest Party Punch,” whereby Flow will manufacture and package BeatBox’s innovative line of Party Punch alcoholic beverages. The Agreement has a term of five years, with commitments for BeatBox to purchase certain minimum annual volumes (the “Minimum Annual Volumes") which, in the aggregate, equate to approximately $115 million in revenue over the life of the Agreement. Additionally, the Agreement has a take-or-pay provision requiring that BeatBox pay Flow the equivalent of 85% of the value of the difference between the applicable Minimum Annual Volume and the actual volume purchased during the relevant 12-month period.
Flow Beverage Corp. Enters into Manufacturing Agreement with BeatBox, With the Potential to Deliver up to $115 million in Revenue Throughout the 5-year Term | Business Wire
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