Celsius sets new strategic direction, creates special board committee
Celsius Holdings, a Florida-based producer of energy drinks, said that its board of directors had established a new special committee to evaluate strategic alternatives. The company has engaged Zenith International to support it in exploring strategic alternatives.
The new committee, which is comprised of independent members of the board of directors, will be charged with evaluating potential strategic proposals as they are received, as well as considering other strategic alternatives. The company also said that it would implement a revised operating and growth strategy.
Celsius Holdings CEO Steve Haley said that the board has asked management, and management concurs, to develop a plan going forward that will not focus on growth but will focus on right sizing operations with a view to achieving profitability in the near term.
"Our new plan is expected to allow us to operate, using our existing cash and our $2m line of credit with an affiliate of Carl DeSantis, our principal shareholder, for the entire year of 2011 without an additional capital infusion," Haley said.
"Our new operating strategy does not require additional capital for 2011; however, we will still seek additional capital in the amount of $2 to $4m to be used for incremental marketing, with a focus on grassroots efforts such as events and gym sampling activities, which we believe will accelerate the company's growth.
"In addition to evaluating potential strategic capital alternatives, the new special committee will be monitoring and evaluating the execution of our new operating plan on a monthly basis.
"The company is taking a more disciplined approach in managing operating expenses and will look at accelerating growth in the future when the capital is available and the timing is right."
Celsius is a pre-exercise fitness drink that has been scientifically shown to burn calories, reduce body fat, energize metabolism, and provide lasting energy.
The company claims that Celsius contains no sugar, no high fructose corn syrup, no aspartame, no artificial flavors, colors or preservatives, and is very low in sodium.
The beverage is made using a proprietary blend of ingredients, MetaPlus, which includes green tea with EGCG, ginger, caffeine, calcium, chromium, B vitamins and vitamin C.