From Evans Brewing:
IRVINE, CA - Evans Brewing Company (OTC PINK: ALES), a producer of award-winning premium craft beers, today announced a $1 million equity purchase agreement with Kodiak Capital Group, LLC, the net proceeds from which are expected to be used to secure the location for a new brewing facility and tasting room and implement additional aspects of the company's ongoing expansion strategy.
Under the terms of the agreement and subject to the filing of a registration statement and its effectiveness by the Securities and Exchange Commission, Evans Brewing Company has the right to sell to, and Kodiak is obligated to purchase, $1,000,000 of Evans Brewing Company's common stock. Kodiak cannot require Evans Brewing Company to sell shares to Kodiak; however, Kodiak is obligated to make purchases as requested by Evans Brewing Company, subject to the terms of the equity purchase agreement.
Kodiak Capital Group will purchase Evans Brewing Company common stock at a price of $2.50/share or 70% of the lowest daily volume weighted average price, whichever is greater. Additional details of the agreement will be included in a Current Report on Form 8-K expected to be filed by Evans Brewing Company today.
Evans Brewing Company intends to use a portion of the proceeds from the financing to secure the location for a new brewery facility and tasting room in Orange County, California. The new brewery will provide increased production capacity for the company's award-winning craft beers. Evans Brewing Company has already selected its brewery development team, including design and construction firms, and also intends to use a portion of the proceeds to secure locations for two additional Orange County tasting rooms.
The company's current brewing facility, the oldest microbrewery in Orange County, has a capacity of approximately 11,000 barrels per year. The new brewery is expected to be built to produce a minimum of 24,000 barrels per year, more than doubling current production capacity.
"This $1 million equity purchase commitment from Kodiak comes at an ideal time, as we are planning to ramp up production in order to meet the anticipated increasing demand for Evans beers," said Michael J Rapport, Chairman & CEO of Evans Brewing Company. "With expanded distribution in 7 states & our first restaurant -- The Public House by Evans Brewing Company -- expected to open later this summer in downtown Fullerton, a larger brewery facility is critical to keep pace with rising demand. This funding will help us immediately secure the best possible location for the facility."
"We have been closely following Evans, a local Orange County company. We are very excited to be partnering with an international award-winning craft brew we are familiar with. Our investment will help management open a new brewery facility to expand locally & its interstate distribution. We are proud to add Evans Brewing Company to our portfolio," stated Colin Manners, Director of Kodiak Capital Group, LLC.
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