The Alkaline Water Company Inc. Announces Submission of its Application to List on NASDAQ and Closing of Private Placement
SCOTTSDALE, Ariz., Oct. 01, 2018 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (TSXV: WTER; OTCQB: WTER) (the “Company”) is pleased to announce that the Company has submitted its application to list its common shares on the NASDAQ Capital Market (“NASDAQ”). By up-listing to NASDAQ, the Company believes it will gain new exposure and access to a larger base of retail and institutional investors in both the US and internationally. The Company believes that the up-listing will provide a venue to unlock the full value of its existing flagship product, Alkaline88®, and its recently announced new line of infused beverage products being brought to market by its wholly owned subsidiary, A88 Infused Beverage Division, Inc. Management feels strongly that the up-listing will bring significant value to the Company.
The listing of the Company’s common shares on NASDAQ remains subject to the approval of NASDAQ and the satisfaction of all applicable listing and regulatory requirements. The Company’s common shares will continue to trade on the TSX Venture Exchange and the OTCQB under the ticker symbol WTER until NASDAQ approval and up-listing. The Company fully intends to comply with all federal, state, and local laws, rules and regulations as the Company develops its Hemp derived CBD infused alkaline water and other nutraceutical product lines and will not pursue the production or sale of CBD infused products until legally permitted and all necessary approvals have been obtained. The Company is very cognizant of the restrictions that NASDAQ and the TSX Venture Exchange has implemented on these types of products, and it is expending the necessary resources to ensure it is in full compliance.
In order to meet certain NASDAQ financial requirements, the Company announces that, subject to final regulatory approval, it has arranged and closed a non-brokered private placement financing (the “Financing”) of 1,619,947 units (each, a “Unit”) at a price of CDN$2.50 per Unit for gross proceeds of CDN$4,049,867. Each Unit consists of one share of common stock of the Company (each, a “Share”) and one share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to purchase one additional Share at a price of CDN$2.90 per Share for a period of two years. All securities issued in the Financing are subject to a Canadian hold period expiring January 28, 2019. The Company paid finder's fees of $123,572 and issued 49,428 warrants.
The proceeds of the Financing are expected to be used for expansion of production capacity, acceleration of the new infused beverage products by A88 Infused Beverage Division, Inc., and general working capital, to support the continued growth of our core business generated from our existing customer base, and through the addition of new national retail accounts.
None of the securities to be issued in connection with the Financing will be or have been registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release is being issued pursuant to Rule 135c of the 1933 Act and shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities, in any state where such offer, solicitation or sale would be unlawful.
The Alkaline Water Company Inc. (TSXV and OTCQB: WTER) has developed an innovative, state-of-the-art, proprietary electrolysis process that produces healthy alkaline water for a balanced lifestyle. The Company is focused on the business of distributing and marketing for retail sale of its cost-effectively packaged Alkaline88® water beverage products. Visit: www.thealkalinewaterco.com.
About Alkaline Water Products
Alkaline88®is a premier 8.8 pH balanced bottled alkaline drinking water enhanced with trace minerals and electrolytes. The product offers consumers the unique opportunity to purchase alkaline water in conveniently packaged 500-milliliter, 700-milliliter, 1-liter, 1.5-liter, 3-liter and 1-gallon sizes. The Alkaline Water Company Inc. is currently in the midst of a national mass-market expansion program, where the product is already available for consumer sales at a growing number of major retail locations across many parts of the United States. Learn more about the science behind alkaline water by visiting www.thealkalinewaterco.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements." Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the following: that the up-listing to NASDAQ will unlock the full value for its products and will bring significant value to the Company.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; that fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; competition in the industry in which the Company operates and market conditions; and the fact that NASDAQ may not approve the Company’s application for listing or that the Company may not meet some or all of the initial listing requirements or the continued listing requirements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on the SEDAR, available at www.sedar.com.
The Alkaline Water Company Inc.
President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Released October 1, 2018