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AMCON Completes Acquisition of Trinity Springs' Assets
OMAHA, Neb., Jun 21, 2004 (BUSINESS WIRE) -- AMCON Distributing Company (DIT),
an Omaha, NE based consumer products company, announced that it has
completed the acquisition of substantially all of the assets of Trinity
Springs Ltd. The assets acquired included the brands, the real estate, the
water rights and equipment.
Trinity Springs, headquartered in Sun Valley/Ketchum, Idaho, bottles and
sells water from a natural spring in Paradise Idaho. The Trinity Springs
source, located at the base of the Trinity Mountains, is one of the world's
deepest known sources of pure natural spring water. Trinity Springs is
recognized as America's only Certified Source for natural purity by QAI
(Quality Assurance International), the world's leading organic certifier.
Trinity Springs products, TRINITY Geothermal Bottled Water and TRINITY
Natural Mineral Supplement, are best sellers nationally in sizes from .5
liter to 1.5 liter.
For the acquisition, AMCON formed a new subsidiary which has changed its
name to Trinity Springs, Inc. The selling entity then changed its name to
Crystal Paradise Holdings, Inc.
In order to facilitate the transaction, AMCON also announced that it has
completed the private placement of 100,000 shares of Series A Convertible
Preferred Stock at $25 per share. The Series A Convertible Preferred Stock
is convertible by the holders into AMCON common stock at a conversion price
of $30.31 per share, subject to customary anti-dilution adjustments.
Dividends on the Series A Convertible Preferred Stock are payable at a rate
of 6.785% per annum. AMCON also has agreed to file a shelf registration on
Form S-3 to register the resale of the shares of common stock issuable upon
conversion of the preferred stock.
William F. Wright, Chairman and Chief Executive Officer of AMCON, said that,
"We are extremely pleased to complete the acquisition of the Trinity Springs
brand and all related assets. Trinity Springs is truly a unique water. We
believe that this special water is well positioned to continue to fuel the
growth of our beverage segment. We expect that all employees and management
of Trinity Springs will continue with the new subsidiary."
AMCON is a leading wholesale distributor of consumer products with
distribution centers in Illinois, Missouri, Nebraska, North Dakota, South
Dakota and Wyoming. In addition, Chamberlin's Natural Foods, Inc. and Health
Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge,
Inc. operate health and natural product retail stores in the Midwest and
Florida. The retail stores operate under the names Chamberlin's Market &
Cafe and Akin's Natural Foods Market. Hawaiian Natural Water Company, Inc.
produces and sells natural spring water under the Hawaiian Springs label.
The Beverage Group, Inc. markets and distributes Hawaiian Springs and other
premium beverage products in the United States, Canada and Mexico.
This news release may contain forward looking statements that are subject to
risks and uncertainties and which reflect management's current beliefs and
estimates of future economic circumstances, industry conditions, company
performance, financial results or the outcome of litigation. These forward
looking statements are statements regarding matters other than historical
facts. A number of factors could affect the outcome of litigation and the
related future results of the Company and thus could cause those results to
differ materially from those expressed in our forward looking statements.
Moreover, past financial performance should not be considered a reliable
indicator of future performance. Accordingly, we claim the protection of the
safe harbor for forward looking statements contained in the Private
Securities Litigation Reform Act of 1995 with respect to all such forward
looking statements.
Visit AMCON Distributing Company's web site at
www.amcon.com
SOURCE: AMCON Distributing Company
AMCON Distributing Company, Omaha
Michael D. James, 402-331-3727
Fax 402-331-4834
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