Hat Trick Beverages, Inc., (HKBV.PK) shares jumped late last week on rumors and then the formal announcement Friday of an initial merger proposal received from a well-established (but as yet unnamed) Italian vending machine manufacturer. Hat Trick Beverages (www.HatTrickDrinks.com) is the parent company of various operating subsidiaries that produce, market, and distribute hot and cold beverages nationwide. The proposal would give the Italian company a majority position in Hat Trick in exchange for cash and stock.
The Italian company is privately held, with assets of approximately 7-10 million Euros, and a 15-year operating history in Europe, but nothing in North America. According to Hat Trick CEO Sender Vaiser, “This is a solid company that was originally introduced to Hat Trick as a possible supplier of equipment for our hot beverages section.”
Vaiser went on to say, “They were very interested in our business plans, and ultimately decided that we offered a superb opportunity to not only access the North American market as a supplier, but as a public company as well.” The buyer also operates coffee-roasting and packaging divisions, and is developing a Vitamin Water Cold Drink Division.
A spokesman for the buyer indicated the potential of adding $10-$12 million in gross revenues to the combined companies, just through U.S. sales of vitamin-enhanced water. Hat Trick would also become a distributor for their specialty beverage vending equipment throughout North America, through Hat Trick’s Tango Café subsidiary.
Hat Trick is based in Encinidas, CA. Its cold drink division is operated from San Diego, and its hot drink division from Toronto, Canada. They have export capabilities to Europe and South America, and are considering entry into Asian markets.
Hat Trick shares quadrupled in value Thursday and Friday, jumping from .002 to as high as .008, before dropping back down to close at .005 on Friday.
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