Boreal Water Collection recently took a major step toward strengthening its balance sheet when it announced the retirement of all outstanding convertible notes held by financing companies. Since October 2014, the company has not entered into any new convertible promissory note agreements, and its management team is confident that it can continue adequately funding operations and expansion without the use of this unpredictable form of financing in the future.
“Retiring all of the convertible debt was a major corporate goal set by our management team,” Francine Lavoie, chief executive officer of Boreal, stated in a news release. “With the uncertainty in our equity structure caused by this type of debt instruments finally behind us, we can now fully focus on growing our business and adding value for our shareholders.”
In total, Boreal’s debt reduction efforts have resulted in more than $830,000 of debts being converted into shares, clearing the way for continued expansion of the company’s market share in the coming months.
“A significant amount of the company’s operating loss and dilution to shareholders was attributable to these convertible note instruments,” continued Lavoie. “While such debt served a purpose during a time when we were investing in creating revenues and developing new products, we are happy to be moving ahead without this type of debt instrument.”
Moving forward, Boreal is now in a formidable financial position to build upon its widespread personalized bottled water distribution network, which is already among the most extensive in North America. In May, the company confirmed its expansion efforts by announcing that its specialty ‘Boreal’s Baby Water’ product would be offered in more than 300 supermarkets in China.
Last month, the company solidified its position in the Asian market by claiming the silver medal at the prestigious International High-End Water Tasting Contest in Guangzhou, China. Boreal’s potential for growth within this thirsty market is immense. Mainly for health and safety reasons, the demand for pristine drinking water in China is typically higher than similar demand in North American markets. In 2012, the Asian nation’s high-end drinking water market was estimated at $1.5 billion, with a forecast 20 percent annual growth rate in the years to come.
For prospective shareholders, Boreal’s recent progress in expanding its distribution channels and strengthening its balance sheet makes the company an intriguing investment opportunity. These strategic moves should allow Boreal to effectively reduce uncertainty in its equity structure while adding considerable value for its shareholders.
For more information, visit www.borealwater.com
