FOR IMMEDIATE RELEASE(PINKSHEETS NEWS SERVICE): April 26, 2006: (Beijing, China and Cleveland, Ohio) -- CALCOL INC. (CLCL-OTC) (Delaware) announced today it has completed a private placement with an institutional investor in the United Kingdom of US$1.5 million of 1.5 million shares of Class C 8% Convertible Preferred Stock. Each share of Class C Preferred Stock is convertible to five shares of Calcol common stock, has the same voting rights and dividend rights as five shares of Calcol common stock, and has a cumulative dividend of 8% in cash or in stock at US$0.20 (Twenty Cents) per share.This current financing completes the investment requirement of US$10 million of registered capital investment into CALCOL's Beijing wholly-foreign owned enterprise 100% subsidiary China registered company, MALIBU-COLA BEVERAGE COMPANY LTD. ("MALIBU-COLA") of Beijing. The company will use the financing to substantially expand its manufacturing and marketing efforts to increase nationwide distribution of its products throughout China in more retail outlets with a greater variety of products, flavors, and package sizes.
CALCOL manufactures, markets and distributes through MALIBU-COLA a full range of carbonated soft drink products in 500 ml, 1.25 L, 2.0 L, and 2.5 L PET bottles and 355 ml aluminum cans, with national marketing and distribution contracts in China with TESCO, CARREFOUR and WAL-MART hypermarket stores and various Chinese supermarkets and distributors. MALIBU-COLA is produced in China under exclusive license from CALCOL INC. of Cleveland, Ohio USA.MALIBU-COLA's products include MALIBU-COLA, MALIBU SUNRISE ORANGE, MALIBU SURF'S UP LEMON LIME, MALIBU VERRY CHERRY COLA, MALIBU LEMON SQUEEZE (carbonated lemonade). MALIBU-COLA will launch several new flavors and additional diet products in May including MALIBU DIET COLA. MALIBU-COLA products typically retail at a 20-25% discount to the other major American cola brands at Tesco and Carrefour and other major international and Chinese hypermarkets and supermarkets in the Beijing and Tianjin areas in China.
CALCOL INC.(Delaware) common stock (par value $.001) trades over the counter in the United States under the symbol "CLCL", involves a high degree of risk, and is a suitable investment only for accredited (high net worth) individuals, institutional investors, and overseas investors. This is not an offer to buy or sell securities. This announcement may contain certain "forward looking statements" and should not be relied upon in any investment decision.
BACKGROUND:
US' CALCOL unit to sell soft drinks in China Wal-Mart, Carrefour stores
01.19.2006, 03:58 AM
BEIJING (AFX) - CALCOL's (CLCL-OTC) China unit, Malibu-Cola Beverage Co Ltd, said it has won a contract to sell a variety of soft drinks at several hypermarket chains in China, the company's president said.
'This arrangement will certainly help us increase market share in the Hebei area and then across China when more such arrangements are made with Wal-Mart and Carrefour,' Malibu-Cola Beverage president Ji Jun told XFN-Asia.
The Chinese unit plans to market Malibu-branded carbonated beverages at Wal-Mart, Sam's Club, Tesco and Carrefour outlets across China, Malibu-Cola said in a statement.
'We are currently delivering to Carrefour and Tesco supermarket chains in Beijing and Tianjin, and we are waiting on a purchase order based on our contract with Wal-Mart's headquarters,' Ji said.
'We will work together with the hypermarkets, and especially hope to cooperate with Wal-Mart's DC's (distribution centers) in Shenzhen and Tianjin to achieve nationwide marketing, and we also plan to open more factories closer to major markets,' Ji said.
CALCOL currently manufactures and distributes in China, primarily to Chinese-owned supermarkets and through local distributors in 10 major cities in the northern province of Hebei as well as Beijing and Tianjin.
The Chinese unit makes Malibu-Cola, Sunrise Orange, Lemon Lime, Verry Cherry Cola and Lemon Squeeze Carbonated Lemonade, as well as Malibu Diet Dee-Lite Cola, which retail at a discount of 20-25 pct below prices of other global brand colas sold in China, the statement said.
Carbonated soft drink products have dominated the food and beverage category in China for many years with sales of 14.5 bln yuan in 2004, according to market research firm ACNielsen.
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