US: Hat Trick Beverages to spin off drinks divisions
Hat Trick Beverages has lined up the spinning off of its hot and cold drinks divisions.
The soft drinks company said earlier this week that the spin-off, to an unnamed Germany-based "publically (sic)-traded company", would result in Hat Trick becoming "an empty shell". The firm is subsequently seeking a merger partner, having identified an Israeli seawater desalination plant as "one possible and suitable merger candidate". China-based companies are also being considered.
Earlier this summer, Hat Trick signed a joint venture agreement with 3 Swordsman Milk Company, in a deal that will allow the company to cross-market its products into China.
While the company did not give a timescale or financial details surrounding the move, Hat Trick did note that the spin-off would take the form of a share exchange transaction in a "slow leak-out agreement", spread over 12 months.
At the same time, Hat Trick noted that all claims in a California lawsuit against it from shareholder Henry Ridge have been dismissed. "The issuer will furnish further details and further filings with its barrister's legal opinion shortly," the company noted.
The Securities and Exchange Commission in the US has suspended trading on Hat Trick's security, having labelled the firm "Caveat Emptor (buyer beware)". The SEC cited the lack of "adequate current information" from the company as the reason for the move.
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