CELSIUS HOLDINGS, INC. (OTCMKTS:CELH) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On January 30, 2019, the Company issued a press release announcing it had entered into a license and repayment of investment agreement with Qifeng Food Technology (Beijing) Co., Ltd (“Qifeng”). Under the agreement, Qifeng will be granted the exclusive license rights to manufacture, market and commercialize Celsius branded products in China. Qifeng agreed to provide a return of a fixed $6.9 million as a license fee covering the first five years, then transitioning to a volume-based royalty fee. In addition, Qifeng will repay the capital Celsius has invested into the China market to date, over a five-year term.
A copy of the Company’s press release dated January 30, 2019 is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
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Item 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On January 24, 2019, John Fieldly, our Chief Executive Officer, and Edwin Negron-Carballo, our Chief Financial Officer, each received a three percent (3%) increase in annual salary retroactive to January 1, 2019.
In addition, on January 24, 2019, Mr. Fieldly and Mr. Negron-Carballo were each granted options under the Company’s 2015 Incentive Stock Plan to purchase 150,000 shares of the Company’s common stock for an exercise price of $3.73. The options vest in three equal annual installments commencing on the first anniversary of the grant date.
| Item 9.01 | Financial Statements and Exhibits. |
| Exhibit No | Description |
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99.1 |
Press Release dated January 30, 2019 |
Celsius Holdings, Inc. Exhibit
EX-99.1 2 s115701_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Relations: Cameron Donahue (651) 653-1854 cameron@haydenir.com Celsius Holdings Signs Definitive Agreement to Establish Royalty License Agreement in China Invested Capital to be Re-paid to Celsius Holdings Over Five-Year Term Loan Boca Raton,…
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About CELSIUS HOLDINGS, INC. (OTCMKTS:CELH)
Celsius Holdings, Inc. is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness beverages under the Celsius brand name. The Company’s product range includes Sparkling Grape Rush, Sparkling Watermelon, Sparkling Orange, Sparkling Wild Berry, Sparkling Cola, Raspberry Acai Green Tea, Peach Mango Green Tea, Flo Fusion Orange and Flo Fusion Berry. The Company’s products are sweetened with sucralose, which is suitable for consumers whose sugar intake is restricted. The Company’s Celsius brand uses ingredients and supplements, such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. The Company outsources the manufacturing process to third-party co-packers. It provides co-packers with flavors, ingredient blends, cans and other raw materials for its beverages purchased by it from various suppliers. It sells Celsius brand across retail segments, which include supermarkets and convenience stores.