TORONTO--(BUSINESS WIRE)--Flow Beverage Corp. (TSX:FLOW; OTCQX:FLWBF) (“Flow” or the “Company”) today announced that Lori O’Neill and Michael Samoszewski have resigned from the Company’s Board of Directors. Flow will announce new nominees to the Board of Directors in the coming weeks.
Flow’s founder and CEO, Nicholas Reichenbach, said, “Both Lori and Michael were instrumental in Flow’s strategic shift toward a capital-efficient operating model. I would personally like to thank them for their outstanding contributions to Flow, culminating with the sale of the Verona facility. Lori has supported Flow in many ways over the last year and Michael’s insights into the beverage industry have been invaluable as we have refined our operating approach.” Added Patrick Bousquet-Chavanne, Lead Independent Director, “We are grateful for Lori and Michael’s numerous contributions. With their help we are confident in Flow’s sustained growth and path to profitability.”
Additionally, given the Company’s recently announced sale of its Verona production facility, which is expected to have a significant positive impact on cash flows, improve gross margins and reduce operating costs, Flow will be hosting an Operational Update conference call in the coming weeks to update stakeholders on the Company’s progress and strategy for profitable growth. The date and details for the conference call will be announced via press release.
Nicholas Reichenbach added, “With the divestiture of the Verona plant, Flow is further able to streamline its operations, bolster its balance sheet and continue to optimize its cost structure. Given the current trading value of our stock relative to our peers, it is our belief that the market is pricing in liquidity risk that we now believe has been greatly reduced. As such, it is our opinion that the Company is undervalued, and it will be incumbent upon Management to try to unlock shareholder value over time. To this end, we will be providing an operational update in the very near future.”
Flow is one of the fastest-growing premium water companies in North America. Founded in 2014, Flow’s mission since day one has been to reduce environmental impacts by providing sustainably sourced naturally alkaline spring water in a recyclable and up to 75% renewable, plant-based pack. Today, the brand is B-Corp Certified with a best-in-class score of 126.5, offering a diversified line of health and wellness-oriented beverage products: original naturally alkaline spring water, award-winning organic flavors, collagen-infused and vitamin-infused flavors in sizes ranging from 330-ml to 1-litre. All products contain naturally occurring electrolytes and essential minerals and support Flow’s overarching purpose to “bring wellness to the world through the positive power of water.” Flow beverage products are available online at flowhydration.com and are sold at over 36,000 stores across North America.
For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com.
This press release may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking statements include, but are not limited to, information with respect to our objectives and the strategies for achieving those objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements are typically identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, although not all forward-looking statements contain these words. Forward-looking statements are provided for the purposes of assisting the reader in understanding Flow and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-looking statements are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. Those risks and uncertainties include the following: impact and spread of COVID-19; ability to achieve and manage growth; failure to expand sales capabilities; changes in consumer preferences; criticism of packaged water; maintain brand image and product quality; constrained or unavailable spring water sources; inability to package products; increased competition; accurately estimating demand; maintaining relationships with distributors and vendors; changing retail landscape; incorrect product design or development; product information misrepresentation; revenues derived entirely from packaged beverages; increases in costs or shortages of materials; fluctuation of quarterly operating results; no assurance of profitability; fluctuations in foreign currency; changes in government regulation; contamination or recalls of ingredients or end products; loss of intellectual property rights; litigation; future tax rates; catastrophic events; climate change; seasonal business; dependence on key information systems and third-party service providers; ability to securely maintain confidential information; maintaining and upgrading information technology systems; conflict of interest; dual class share structure; potential volatility of share price; no assurance of active market for shares; lack of dividends; global financial condition; publication of inaccurate or unfavorable research and reports; operating history; and management and conflict of interests. Consequently, all of the forward-looking statements contained herein are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and we do not undertake to update or amend such forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.