Palm Beach, FL 6/1/12 (StreetBeat) -- Drinks Americas Holdings, Ltd., ("Drinks") (OTCBB:DKAM), a leading developer and marketer of beverage products, announced today that it has entered into a letter of intent regarding the acquisition of Worldwide Beverage Imports, LLC ("WBI") for approximately 1,000,000 shares of common stock of the Company in exchange for the assignment and assumption of the contract and sale rights to WBI's licensed brands, WBI's sales rights in California (the only territory not currently included in Drinks distribution agreement), WBI's lease for warehouse facilities and a right of first refusal to purchase the assets of Fabrica de Tequilas Finos, S.A. de C.V. and Cerveceria Mexicana, S. de R.L. de C.V. and Cerveceria Azteca, S. de R.L. de C.V.
The immediate impact of the close of this transaction will be the addition of up to $2mil of tequila sales for Drinks Americas from the addition of California territory sales, which sales area not currently included in the scope of Drinks Americas' global distribution and licensing contract with WBI.
Patrick Kenny, CEO of Drinks Americas stated, "Closing this transaction will have the immediate impact of potentially increasing our gross margins, enhancing our potential profitability and immediately adding up to $2mil in revenue from the additional California sales revenue to our overall national business model. The transaction, once completed, will impact Drinks Americas' size, scale, potential profitability, and will add a large west coast sales and distribution center."
The final terms and conditions of the Transaction are being negotiated and will be determined in a definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, the grant to the Company of a thirty day right of first refusal to purchase the assets of Fabrica de Tequilas Finos, S.A. de C.V. and Cerveceria Azteca, S. de R.L. de C.V., which right of first refusal shall expire twelve months from the date of the contemplated definitive agreement.
For further information see Drinks Americas' Current Report on Form 8-K filed with the SEC on May 30, 2012.
About Drinks Americas
Drinks Americas develops, owns, markets, and nationally distributes alcoholic premium beverages. In June 2011, the Company entered into a sales, distribution and licensing agreement with Worldwide Beverage Imports, LLC and is now selling and distributing KAH® Tequila, Agave 99® Tequila, Rio Bravo Beer, Crazy Pig Mexican Ale and Chili Devil Beer. The Company also markets Willie Nelson's Old Whiskey River Bourbon, Olifant Vodka, receives a royalty for Kid Rock's American Badass Beer and Damiana Mexican Liqueur, and owns and distributes Rheingold Beer.
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