BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 10, 2002--"New Age" beverage company XStream Beverage Group Inc. (OTCBB:XSBG) today announced the signing of a definitive agreement to acquire Dark Dog http://www.darkdog.com, the world's second most recognized energy drink brand. XStream will buy Dark Dog for $34 million in a combination of cash and stock. The closing is scheduled for September 30, 2002.
The acquisition is just one of a number slated for the next two years and will allow XStream to further enhance Dark Dog's position in the global market. Already widely known in Europe, the award-winning Dark Dog is currently distributed in over 20 countries worldwide and is second globally in market brand recognition only to Red Bull, the company that currently leads the energy drink segment of the "New Age" beverage market.
"Dark Dog produces an outstanding product and it is a company that we are proud to be in partnership with and have as part of the XStream family," said Ted Farnsworth, Chairman and Founder of XStream Beverage Group Inc. "XStream's goal is to continue to gain market share in the global energy drink space."
"We are delighted to be working with XStream Beverage and believe that the partnership will facilitate the continuing growth of Dark Dog worldwide," said Gunther Ballweber, Chairman of Dark Dog.
Dark Dog will be operated as a wholly owned subsidiary of XStream Beverage. Ballweber remains as Dark Dog's President and CEO and will also serve on XStream Beverage's board of directors.
"Dark Dog has an image as the extreme energy drink," Farnsworth explained. "It's part of what has made the beverage so popular throughout the world. We are happy to continue with the winning formula."
The news of the definitive agreement of Dark Dog follows the recent announcement that Cardinal, the venerable Miami-based financial services and investment banking firm, brought XStream Beverage Group into its portfolio. The incubator relationship is a first for Cardinal, though the firm has long given private investors access to public offering shares. Cardinal has signed a firm commitment letter to provide XStream Beverage with funding of $10 million, including $3 million in equity financing and $7 million in a secondary offering.
About XStream Beverage Group Inc.
Established in 2001 by Ted Farnsworth, XStream Beverage Group Inc. is positioned to become one of the leaders in the "New Age" segment of the beverage industry. The company plans to continue acquiring small to medium New Age beverage companies and ready-to-drink, energy drinks, sports drinks and bottled water. XStream also plans to develop beverages under its own label. The company is funded and incubated by Miami-based Cardinal Capital http://www.cardinalcapital.net and is a public entity trading on the OTC, ticker symbol XSBG.
About Dark Dog
Dark Dog was founded in Salzburg, Austria in 1995. It has offices in Austria, Spain, Singapore and Uruguay. Dark Dog first launched their energy drink in 1999 in Norway after a three years of testing. The company's energy drink is based on natural guarana caffeine and vitamins and is produced just outside Salzburg, Austria, with the use of clear natural spring water. For more information, go to http://www.darkdog.com.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include fluctuations in costs, changes in consumer preferences and other items described in the Company's Securities and Exchange Commission filings and the Company undertakes no obligation to update the forward-looking statements.