MIAMI, Dec 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- ChampionLyte Holdings, Inc. (CPLY) announced today the company has obtained $20 million in committed equity capital in the form of a Standby Equity Distribution Agreement (SEDA) with an institutional investor.
Under the terms of the SEDA, the investor has committed to provide up to $20 million of funding to the Company over a 24-month period to be drawn down at the Company's discretion by the sale of its common stock to the investor.
Company President, David Goldberg, said the funds will be primarily used to finance brand development as well as potential acquisitions.
"While we believe we've made great strides in brand development and distribution, access to these additional capital resources will allow us to further expand our ChampionLyte(R) Sports Drinks and Sugar-Free Syrups brands and help launch our new Be-Lyte(R), low-carb subsidiary," said Goldberg. "We also intend on seeking out acquisitions that are complementary to our existing business that will be accretive to earnings."
ChampionLyte Beverages, Inc. manufactures and markets ChampionLyte(R), the first completely sugar-free entry in the multi-billion dollar isotonic sports drink market. It is the only sports drink with no sugar, calories, sorbitol, saccharin, aspartame, caffeine or carbonation. The reformulated product is sweetened with Splenda(R), the trade name for Sucralose produced by McNeil Nutritionals, a Johnson & Johnson company.
With the establishment of its low-carb subsidiary, Be-Lyte(R) Foods, the Company recently entered the low-carb products market, expected to hit $30 billion in sales this year according to trade publication LowCarbBiz.
About ChampionLyte Holdings, Inc.
ChampionLyte Holdings, Inc. is a fully reporting public company whose shares are quoted on the OTC Bulletin Board under the trading symbol CPLY. Its beverage division, ChampionLyte Beverages, Inc., a Florida corporation, manufactures, markets and sells ChampionLyte(R), a completely sugar-free entry in the multi-billion dollar isotonic sports drink market. Its The Old Fashioned Syrup Company subsidiary manufactures, distributes and markets three flavors of sugar-free syrups. The products are sold in more than 20,000 retail outlets, including some of the nation's largest supermarket chains. The Company recently announced it had established Be-Lyte(R) Foods, a low-carb subsidiary.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.