WESTON, FL -- (Marketwired) -- 10/26/15 -- South Beach Spirits, Inc. (OTC PINK: SBES) ("South Beach Spirits" or the "Company"), an alcoholic beverage development, marketing, and distribution holding company, today provided this update regarding its current and future business outlook.
On October 19, 2015, the Company was served with a pro se legal action filed by Victor G. Harvey, Sr. and his limited liability company, V Georgio Enterprises, LLC, in Circuit Court, Broward County, Florida, alleging certain breaches of the Company's payment obligations under an Asset Purchase and related agreements entered into with the Company as disclosed in connection with the previously announced acquisition of the V Georgio vodka brand, and Mr. Harvey's employment as CEO of V Georgio, Inc., a subsidiary of the Company formed to relaunch the brand. The complaint purportedly seeks, somewhat inconsistently, injunctive relief for damages incurred by the plaintiffs as a result of such alleged breaches. Contemporaneously with filing the action, Mr. Harvey resigned as CEO of V Georgio, Inc. and the resignation was immediately accepted by the board of directors. Mr. Harvey will have no further role with the Company.
The Company believes that the plaintiffs' claims are without merit, that it has various defenses and potential counterclaims against the plaintiffs, and it will vigorously defend this action including the breach by the plaintiffs of their representation warranties as to the free and clear status of the assets purchased by the Company thereunder and the absence of judgments against the plaintiffs.
Vincent Prince, CFO of South Beach Spirits, Inc., commented, "Based upon Mr. Harvey's legal actions, resignation, and his inability to address critical previously undisclosed brand and asset ownership issues, we are not moving forward with the planned relaunch of V Georgio."
"Going forward we remain committed to building South Beach Spirits into a market leader in the alcoholic beverage industry and continue to focus our attention on acquiring established and performing brands and companies in the space. With this strategy in mind, we are currently in advanced discussions regarding the potential acquisition of a controlling interest in several going concerns that have inventory, production, and sales and distribution, including a state-of-the-art distillery operation in South Carolina and a premium tequila brand based in South Florida."
About South Beach Spirits, Inc. (SBES)
South Beach Spirits, Inc. (SBES) is a Florida-based alcoholic beverage development, marketing, and distribution holding company.
Disclaimer/Safe Harbor: This South Beach Spirits, Inc. news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include failure to meet schedule or performance requirements of the Company's contracts, the Company's ability to raise sufficient development and working capital, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur as planned or at all.
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South Beach Spirits, Inc. - Investor Relations
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