Vegan Energy Drink Maker Celsius Closes Deal in China

0
636
Vegan Energy Drink Maker Celsius

Celsius Holdings, Inc. (Nasdaq: CELH), maker of the leading global fitness drink, CELSIUS®, —certified kosher and vegan as well as soy and gluten-free— has closed on a definitive agreement to establish a royalty license and repayment of investment agreement with Qifeng Food Technology (Beijing) Co., Ltd. 

In addition to the royalty license fee, Qifeng Food will repay Celsius $12.25 million, which the company invested into the China market over a five-year loan term.

“With the closing of the definitive agreement, Celsius will receive over $19 million through the initial five-year term of the agreement, including $12.25 million in repayment of invested capital and $6.9 million from the royalty license fee,” commented John Fieldly, CEO of Celsius Holdings.  “We believe this new structure maximizes shareholder value by eliminating future capital requirements while creating a structure that is well positioned to rapidly gain market share in China. This innovative structure also provides us with strong upside opportunity from the royalty and license structure as well as the $12.25 million of invested capital we will receive.”

Celsius Holdings’ investment into the Mainland China market prior to the signing of the definitive agreement of $12.25 million shall be returned to Celsius Holdings over a five-year loan term at an interest rate of 5% on outstanding loan principal up to $5 million and 2% on outstanding loan principal in excess of $5 million. Total loan interest will be accrued and is payable together with each annual installment of loan principal.

Celsius Holdings, Inc.,founded in April 2004, is a global company that has a branded portfolio consisting of two beverage lines; each offering proprietary, functional, healthy-energy formulas that it reports are clinically-proven to offer significant health benefits to its users.* The CELSIUS® Original Line comes in nine sparkling and non-carbonated flavors in sleek 12oz cans and is also available in single-serve powder packets in four on-the-go, enjoyable flavors. The CELSIUS® Stevia Line is an extension of the original line offering naturally-caffeinated and naturally-sweetened and is available in five refreshing sparkling and non-sparkling flavors.

CELSIUS® has zero sugar, no preservatives, no aspartame, no high fructose corn syrup, and is non-GMO, with no artificial flavors or colors. The product line is sold in the U.S. through dominant fitness channel distributors and retailers, The Vitamin Shoppe, GNC, Amazon.com, Walmart.com, Target, 7- Eleven, Sprouts, The Fresh Market and other key regional retailers such as HEB, Publix, Winn-Dixie, Harris Teeter, Shaw’s, Food Lion, CVS and others.

More at Celsius.