YGYI - CLR Roasters Finalizes Finance and Supply Agreement to Facilitate the Purchase and Processing of up to 49.5 million pounds of Green Coffee for 2020 Growing Season
MIAMI, March 9, 2020 /PRNewswire/ -- Youngevity International, Inc. (Nasdaq: YGYI), today announced that its wholly-owned subsidiary CLR Roasters has entered into a finance and supply agreement for the 2020 growing season with H&H Export Y CIA, LTDA, funded by H&H Export's $46,500,000 credit facility established with a Nicaraguan special purpose Agency. The credit line has been established by the Agency for the purchase of up to 49.5 million pounds (495,000 Quintals) of green coffee. CLR Roasters provided additional collateral with a value of $11.1 million dollars to secure the financing arrangement.
The company plans on processing the green coffee beans for the 2020 growing season at the new state of the art production facility it built in partnership with the Siles Family Plantation Group in Matagalpa, Nicaragua, and expects to have the processing plant fully online by July. Unprocessed green coffee beans are already being dried and stored at the new facility. CLR's other company-owned production facility, La Pita, located in Matagalpa, Nicaragua is fully operational and has begun to process the 2020 green coffee crop.
"This is a very impressive partnership and this finance and supply agreement has fortified our position as one of the lead processors and exporters coming out of Nicaragua. We expect our balance sheet will be strengthened because of this partnership and we plan on leveraging this relationship to further grow our top line revenue and operating profits," said Dave Briskie, President and CFO of Youngevity.
Ernesto Aguila, President of CLR Roasters, stated, "This is a big deal for CLR. We believe we are now well positioned to exceed last year's record revenue and profit numbers. Having these significant financial resources should be a key component for driving our 2020 green coffee program."
Marisol Siles, Managing Partner of Siles Family Plantation Group, said, "We expect this finance and supply agreement will provide continued job growth and economic expansion of the local community of Matagalpa, Nicaragua."
"We are looking forward to building on the momentum we established during the 2019 growing season with this significant financing arrangement along with the recent delivery of over 49 million pounds of green coffee to our mills in Matagalpa," said Alain Piedra Hernandez, President of H&H Export Y CIA. LTDA.
About CLR Roasters
Youngevity's coffee manufacturing division, CLR Roasters, was established in 2001 and is a wholly-owned subsidiary. CLR Roasters is a full-sized coffee roaster that produces gourmet coffees under its own boutique brands — Café La Rica®, Josie's Java House®, and Javalution®; manufactures a variety of private labels for major national chains; and for the direct selling channel under Youngevity International. The company remains one of the largest suppliers in North America to the cruise line industry. CLR was the first entrant into the fortified coffee niche with its Youngevity JavaFit® brand. In May 2014, CLR acquired a coffee plantation and processing facility in Nicaragua, allowing the entity to control coffee production and quality — from field to cup.
About Youngevity International
Youngevity International, Inc. (NASDAQ : YGYI), is an multi-channel lifestyle company operating in 3 distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise. The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewellery, as well as innovative services. For investor information, please visit YGYI.com. Be sure to like us on Facebook and follow us on Twitter
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and include statements regarding plans to process green coffee beans for the 2020 growing season, the new state of the art production facility in Matagalpa, Nicaragua being fully online by July, strengthening our balance sheet and growing our top line revenue and operating profits, CLR Roasters exceeding last year's record revenue and profit numbers, the financial resources of the credit facility being a key component for driving our 2020 green coffee program, the finance and supply agreement providing continued job growth and economic expansion of the local community of Matagalpa, Nicaragua and the financing arrangement building on the momentum established during the 2019 growing season. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to commence full operations at the new processing plant as scheduled in July, our ability to strengthen our balance sheet and grow our top line revenue and operating profits, our ability to exceed last year's record revenue and profit numbers at CLR Roasters, our ability to leverage the financial resources of the credit facility to drive our 2020 green coffee program, our ability to contribute to continued job growth and economic expansion in Matagalpa, Nicaragua, our ability to build on the momentum established during the 2019 growing season, our ability to expand and continue our coffee segment growth, our ability to continue our hemp segment growth, our ability to continue our international growth, our ability to leverage our platform and global infrastructure to drive organic growth, our ability to improve our profitability, expand our liquidity, and strengthen our balance sheet, our ability to continue to maintain compliance with the NASDAQ requirements, the acceptance of the omni-direct approach by our customers, our ability to expand our distribution, our ability to continue our financial performance and the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
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Contacts
Youngevity International, Inc.
Dave Briskie
President and Chief Financial Officer
1 800 982 3189 X6500
Investor Relations
YGYI Investor Relations
800.504.8650
investors@ygyi.com
SOURCE Youngevity International, Inc.