Capital Injection Avoids Equity Dilution
The Company
This is an Arizona-based manufacturer of both alcoholic and non-alcoholic jun beverages. Jun is a cousin to kombucha that’s made with honey instead of cane sugar.
The Situation
The Company has no outside financing. As is typical for beverage companies, the owner and deep pocket investors inject (and burn through) capital before they get their feet under them. It’s common to steadily lose money while growing the brand. The overall strategy is to develop the brand, grow revenue and then sell the Company to a bigger brand at a huge profit.
This owner was looking for capital to limit the need for additional equity investors.
The Solution
A third-party intermediary referred the owner to Celtic Capital. We provided a $711,300 Equipment-Only Loan to give the owner the capital needed.
The Result
Company projections show a 75%-80% increase in revenue next year which will put it in the black. There is a lot of activity with a number of retailer’s and we’ve told the owner we’re happy to finance the Accounts Receivable whenever needed to help in the Company’s ongoing evolution.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.