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The Alkaline Water Company Announces Strategic $1.5 Million Inventory Agreement
WTERThe Alkaline Water pany (WTER) GlobeNewswire·2025-02-06 13:30

Core Viewpoint - The Alkaline Water Company has announced a strategic bulk purchase of inventory valued at over 1.5million,tobefulfilledthroughtheissuanceof94.3millionsharesofcommonstock,whichwillbesubjecttoa12−monthlock−upperiod[1][2].Group1:StrategicTransaction−Theshareissuancewillnotimpactthecompany′scurrentpublicfloatornear−termtradingdynamics,allowingthecompanytopreservecashwhilesecuringessentialinventoryforgrowth[2].−Thetransactionisexpectedtoleadtosubstantialinventoryturnoverwithinthefirst60daysthroughplanneddistributionpartnerships[2].−TheCEOstatedthatthisagreementsignificantlyimprovesthecompany′scashflowtrajectoryandreducesitsnegativecashpositionbyapproximately1.5 million, to be fulfilled through the issuance of 94.3 million shares of common stock, which will be subject to a 12-month lock-up period [1][2]. Group 1: Strategic Transaction - The share issuance will not impact the company's current public float or near-term trading dynamics, allowing the company to preserve cash while securing essential inventory for growth [2]. - The transaction is expected to lead to substantial inventory turnover within the first 60 days through planned distribution partnerships [2]. - The CEO stated that this agreement significantly improves the company's cash flow trajectory and reduces its negative cash position by approximately 1.2 million through June [2][8]. Group 2: Financial Projections - The company anticipates an acceleration of positive monthly cash flows by approximately two months as a result of this transaction [8]. - An expected reduction in initial cash burn is projected to be nearly $500,000 in the first month of implementation [8]. - The strategic inventory position will be leveraged through forthcoming agreements with retailers, brokers, distributors, and co-packers, which will be announced in the coming weeks [2].