Merger Termination - Coffee Holding has terminated the previously announced Merger Agreement with Delta Corp Holdings Limited, originally announced on September 30, 2022 [1] - The termination follows an unsuccessful shareholder vote in April to approve the merger [2] - The board believes that as an independent company, executing a renewed growth strategy will create shareholder value [2] Financial Performance - 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 [4] - The loss was primarily due to a historic surge in the London Robusta market, which impacted profit margins [4] - Price increases have been initiated to offset the rise in London Robusta coffee prices, with expected recognition in fiscal Q4 2024 [4] Business Operations - The company has cleaned up its balance sheet and paid down debt incurred from losses related to its former subsidiary Generations Coffee LLC and equipment purchases [3] - A credit agreement with Webster Bank has been extended to address the company's ability to continue as a going concern [3] - New business agreements have been secured, including production agreements with the largest retailer in the Northeast and a two-year agreement with a major U.S. national retail chain [3] Market Position - Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States, offering a broad array of coffee products [5] - The company has eight proprietary brands targeting different segments of the consumer coffee market [5] - In addition to roasted coffee, the company imports and resells green coffee beans to regional roasters and coffee shops in the United States and Canada [5]
Coffee Holding Co., Inc. Terminates Merger with Delta Corp Holdings Limited