Exhibit 99.1
FOR IMMEDIATE RELEASE
Bravo! Foods International Corp.
Investor Relations Contact Company Contact
Integrated Corporate Relations Jeffrey J. Kaplan, Chief Financial Officer
Kathleen Heaney (561) 625 1411
203-803-3585
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Bravo! Foods International Corp. Reports Updates On SEC Filings and its
Senior Convertible Notes Due 2010
North Palm Beach, FL., August 21, 2006. Bravo! Foods International Corp. (OTC
Bulletin Board: BRVO-News), a brand development and marketing company that
manufactures, promotes and distributes vitamin-fortified, flavored milk drinks
and other beverages, announced today that, as a result of the time required to
implement a new valuation model for certain of its derivative financial
instruments, it would not be able to file its Form 10-QSB for the quarterly
period ended June 30, 2006 by August 21, 2006, the last day of the extended
period for filing. The Company had previously filed a Form 12b-25, disclosing
its need for an extended filing period. The Company is in the process of
implementing a more suitable valuation model for these instruments. The
resulting adjustments will be non-cash and will not impact the operating results
of the Company.
As a result of the Company's non-filing of its Form 10-QSB for the quarterly
period ended June 30, 2006, an event of default has occurred under the terms of
the $30 million Senior Convertible Notes (the "Notes") issued on July 27, 2006
and the annual interest rate on the Notes was increased from 9% to 14%. In the
event, however, that such event of default is subsequently cured, interest on
the Notes shall revert to the rate of 9% per annum.
In addition, upon the occurrence of an event of default, holders of the Notes
may, upon written notice to the Company, require the Company to redeem all or
any portion of their Notes.
Roy Warren, Chief Executive Officer, commented, "As soon as we knew of the
revaluation issue we contacted our auditors as well as outside auditing
consultants. Both professional groups have been and will continue to work
diligently to address the valuation model until it is completed and this issue
is resolved."
About the Company
Bravo! Foods International Corp. develops, brands, markets, distributes and
sells nutritious, flavored milk products throughout the 50 United States, Great
Britain and various Middle Eastern countries. Bravo!'s products are available in
the United States and internationally through production agreements with
regional aseptic milk processors and are currently sold under the brand names
Slammers(R) and Bravo!(TM). Bravo!'s Slammers(R) products are available
nationwide in popular chains such as: 7-Eleven, A&P, Dutch Farms, Giant Food
Stores, Jewel, Kings, Pathmark, Safeway, Sam's Club, Shaw's, ShopRite, Speedway,
SuperTarget, Unified, Waldbaums and Walgreens.
Many of Bravo! Foods' Slammers(R) lines of shelf-stable, single-serve milk
drinks are co-branded through exclusive partnerships with Masterfoods, a
division of Mars Incorporated, and MD Enterprises (Moon Pie(R)), providing
superior name recognition packaged with quality, great-tasting drinks.
On November 1, 2005, Coca-Cola Enterprises, Inc. began distribution of the
Slammers(R) Masterfoods line, as well as the Bravo!'s Slim Slammers(R) and Pro
Slammers(TM) products, under a Master Distribution Agreement with Bravo!
For more information, visit: http://www.bravobrands.com.
Forward Looking Statements
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The
statements which are not historical facts contained in this press release are
forward-looking statements
that involve certain risks and uncertainties including but not limited to risks
associated with the uncertainty of future financial results, regulatory approval
processes, the impact of competitive products or pricing, technological changes,
the effect of economic conditions and other uncertainties as may be detailed in
the Company's filings with the Securities and Exchange Commission.
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