Coffee Holding Co., Inc. Terminates Merger with Delta Corp Holdings Limited

Merger Termination and Strategic Shift - Coffee Holding Co Inc has terminated the previously announced Definitive Merger and Share Exchange Agreement with Delta Corp Holdings Limited which was originally announced on September 30 2022 [1] - The termination follows an unsuccessful shareholder vote in April to approve the merger and the board of directors has decided to move forward as an independent company [6] - The company believes that executing its renewed growth strategy as an independent entity will create shareholder value that has been elusive in recent times [6] Financial Performance and Market Challenges - The company has shown profits in three of the past four reporting periods with a $0 02 per share loss in the most recent quarter which was an improvement from Q2 of Fiscal 2023 [7] - The recent loss was primarily due to a historic surge in the London Robusta market to all-time contract highs which significantly impacted profit margins on both branded and private label businesses [7] - The company has initiated price increases to most of its major customers to offset the rise in London Robusta coffee prices though the full effect of these increases is expected to be recognized in the fiscal fourth quarter of 2024 [7] Business Developments and Revenue Growth - Coffee Holding has secured several new business agreements including production deals with the largest retailer by market share in the Northeast and a two-year agreement with a major US national retail chain [2] - These agreements have contributed to four consecutive quarters of revenue growth despite the loss of approximately $8 0 million in annual revenue from the closure of the Generations Steep subsidiary [2] - The company has been focusing on cleaning up its balance sheet paying down debt and extending its credit agreement with Webster Bank to ensure its ability to continue as a going concern [2] Company Overview and Market Position - Founded in 1971 Coffee Holding Co Inc is a leading integrated wholesale coffee roaster and dealer in the United States offering a broad array of coffee products across various consumer segments [10] - The company operates eight proprietary brands targeting different consumer segments and also roasts and blends coffee for major wholesalers and retailers under their own names [10] - In addition to selling roasted coffee Coffee Holding imports green coffee beans from around the world reselling them to smaller regional roasters and coffee shops in the US and Canada [10]