ChampionLyte Holdings has obtained US$20m in committed equity capital in the form of a Standby Equity Distribution Agreement (SEDA) with an institutional investor.

Under the terms of the SEDA, announced today (8 December), the investor has committed to provide up to US$20m of funding to the company over a 24-month period to be drawn down at the company's discretion by the sale of its common stock to the investor.

Company president David Goldberg said the funds will be primarily used to finance brand development as well as potential acquisitions.

"While we believe we've made great strides in brand development and distribution, access to these additional capital resources will allow us to further expand our ChampionLyte Sports Drinks and Sugar-Free Syrups brands and help launch our new Be-Lyte, low-carb subsidiary," said Goldberg.

"We also intend on seeking out acquisitions that are complementary to our existing business that will be accretive to earnings."