Movers: PRMW +31%; CNIT +21%; ARCW +21%

Tomahawk, WI 4/13/2012 (StreetBeat) -- Top movers for today: Primo Water Corp. (PRMW) was up 31 percent at $2.10 per share on heavy volume of nearly 3 million shares compared to its average daily volume of 400,000; China Information Technology (CNIT) was up 21 percent at $1.35 per share on heavy volume of nearly 700,000 shares compared to its average daily volume of about 100,000 shares; and ARC Wireless Solutions (ARCW) was up 21 percent at $3.58 per share on light volume.

PRMW today announced it has received a commitment from a senior lender to enter into a new long-term $20 million senior revolving credit facility. Also, the Company expects to close a term loan for up to an additional $15 million with a separate lender, secured by certain fixed assets of the Company.

ARCW yesterday announced the signing of definitive agreements to purchase Advanced Forming Technology, Inc. and Quadrant Metals Technologies, LLC.

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Primo Water (Nasdaq: PRMW) Announces Update on Financing Initiatives

Shawshank, VA 3/12/12 (StreetBeat) -- Primo Water Corporation (Nasdaq:PRMW), a leading provider of water dispensers, environmentally responsible bulk bottled water and premier sparkling beverage appliances, today announced it has received a commitment from a senior lender to enter into a new long-term $20 million senior revolving credit facility. Also, the Company expects to close a term loan for up to an additional $15 million with a separate lender, secured by certain fixed assets of the Company. The facilities are expected to have a four year term and will include customary terms and covenants, and are expected to close within 30 days. The Companyexpects to use the loan proceeds to pay off its existing senior credit facility and for general working capital purposes.

About Primo Water Corporation

Primo Water Corporation is a leading provider of water dispensers, environmentally responsible bulk bottled water and premier sparkling beverage appliances sold through major retailers throughout the United States and Canada.

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Primo Water Corporation and SDS-IC Announce International Strategic Alliance

Tallahassee, FL 11/29/11 (StreetBeat) -- Primo Water Corporation (Nasdaq: PRMW), a leading producer of innovative beverage solutions in North America, and Sparkling Drink System Innovation Center LTD, an international marketing and manufacturing company specializing in home beverage carbonation products, today announced a strategic alliance. The strategic alliance will include mutual R&D, marketing, manufacturing and distribution of the parties' respective home beverage carbonation products and related accessories. Those products include 40 appliances utilizing five different beverage technologies. Through cross-distribution and licensing agreements, the parties' respective products will be made available throughout North America and mutually-agreed territories outside of North America.

Primo Water is a leading provider of purified water and ENERGY STAR(R)-rated home water dispensers and home beverage carbonating appliances with combined distribution in more than 20,000 leading retail locations in North America. Primo's newest innovation, Primo Flavor Station 500(TM), is a home beverage system providing patented, single serve, 100 percent naturally flavored beverages.

SDS-IC, based in Tel Aviv, Israel, offers complementary technologies, appliances and consumables including a new syrup dispenser called "squeeZZe," focused on home beverage carbonation systems. The SDS-IC appliances utilize the innovative FSS and FSS Turbo technology that provide an adjustable and more efficient way to carbonate beverages. SDS-IC distributes its products internationally in several countries including Australia, Belgium, France, Italy, the Netherlands and North Africa. SDS-IC also has its own manufacturing facilities in China and multiple international technology patents.

"Our alliance with SDS-IC is a significant step forward in our development of the highest quality and full line of home beverage carbonation products. We believe SDS-IC is one of the most experienced companies in this product market with its principals having managed home beverage carbonation systems in Europe since 1999," said Billy Prim, Primo Water's President and CEO. "This strategic alliance will help bring multiple premium beverage products and appliances, many under the Primo brand, to consumers worldwide and allow both Primo and SDS-IC to create new consumers in new markets, which we believe will lead to long-term growth."

The strategic alliance includes cross-distribution and licensing agreements pursuant to which Primo Water will distribute its products outside of North America in certain mutually agreed territories exclusively through SDS-IC and certain SDS-IC products will be distributed in North America exclusively by Primo Water. The alliance will allow each party to market and sell a complete line of home beverage products and will capitalize on each party's expertise in the appliance, flavor and carbonation categories. The cross-distribution and licensing agreements provide for total minimum purchases of $20 million annually. These minimum purchases consist of a commitment by SDS-IC to purchase products from or pay license fees to Primo Water in the amount of $10 million annually and a commitment by Primo Water to purchase products from or pay license fees to SDS-IC in the amount of $10 million annually.

"SDS-IC is committed to offering consumers worldwide a complete range of products to enable the creation of the beverages they desire at an economical price and we believe our alliance with Primo Water is the perfect addition to our existing line of innovative home beverage carbonation solutions," stated Serge Bueno, SDS-IC's Chairman and CEO. "We expect Primo's Flavor Station 500(TM) to resonate extremely well with our international consumer base and look forward to expanding the distribution of the complete line of SDS and Primo beverage appliances deeper into new and existing markets."

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Another Rough Quarter for Primo Water, Shares Down 23%

Tallahassee, FL 11/10/11 (StreetBeat) --Primo Water's (Nasdaq: PRMW) third quarter results are in, casting further doubt about the viability of the company's business model.

Revenues came in at $24 million for the quarter, matching expectations, but the company dropped what is becoming its regular quarterly bombshell by slashing fourth quarter revenue expectations. They now expect revenue of $22-24 million. A potential sequential revenue decline is a big shock. Primo's business of supplying water has minimal seasonality and any possible value to the stock is contingent on big top line growth, ultimately resulting in the scale that will generate positive profit margins.

As for margins, in the quarter Primo's revenue wasn't even sufficient to cover its cost of product and general and administrative expenses. On that basis alone the company lost $145,000. This doesn't include the significant amounts they are spending to expand and on capital equipment, store displays, bottle inventory, etc. Operating loss in the quarter was $2.9 million, higher than last year's $2.1 million even though sales were up 120% and even though Primo purchased a profitable water refilling business in November 2010 (which was responsible for two-thirds of the revenue increase). That business had been earning $7 million a year in operating profits. So far the trend is, the bigger they grow, the more money they seem to lose.

Primo could be running out of time. Cash dwindled from $10.3 million to $1.1 million in the quarter and the company began, again, to draw on its credit line. Recall that the company closed a secondary in June, raising $39.5 million, which was used to pay off previously accumulated debt. As to the revolver, Primo received a waiver in the second quarter because EBITDA was significantly below the minimum required under their credit line, and they were seeking an amendment. Any amendment will likely come with higher borrowing rates or a lower availability.

Thursday will be Primo's one year anniversary as a public company after listing on November 10, 2010, at $12 a share. The prospectus at that time revealed a company with a checkered past, full of credit line amendments and below plan sales growth. Primo relies on local bottlers for water fulfillment, making the supposed "razor blade" part of their offering a competitive and low margin business. We think the business model is flawed and unsustainable, and that it's possible that Primo's only residual value is the self-refill business they purchased from Culligan in late 2010.

Shares are currently trading at $3.51, down $1.07 or 23%.

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