| Hawaiian Natural Water Company, Inc. | |||
| Ticker: | HNWC | 248 Mokauea Street | |
| Exchange: | NASDAQ-Small Cap Market | Honolulu, HI 96819 | |
| Industry: | Wholesale (SIC Code 5149) | (808) 832-4550 | |
| Type of Shares: | Common Shares | Filing Date: | 12/19/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 5/14/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $4.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $4.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.40 | |
| Offering Amount: | $8,000,000 | Selling: | $0.10 | |
| Expenses: | $6,000,000 | Reallowance: | ||
| Shares Out After: | 3,599,212 |
| Manager | Tier | Phone |
| Joseph Stevens & Company, L.P. | Lead Manager | (212) 361-3020 |
| Issuer's Law Firm: | Graham & James |
| Bank's Law Firm: | Orrick, Herrington & Sutcliffe |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 9/30/96 | 9/30/95 | 9/30/96 | ||
| Revenue: | $0.59 | $0.75 | $0.53 | Assets: | $0.85 |
| Net Income: | -$0.74 | -$0.69 | -$0.44 | Curr Assets: | |
| EPS: | -$0.62 | -$0.43 | -$0.42 | Liabilities: | $1.95 |
| Prior EPS: | -$0.09 | Curr Liabilities: | |||
| Cash Flow/Oper: | -$0.46 | Equity: | -$1.10 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| Hawaiian Natural Water Company, Inc. bottles, markets and distributes "natural" water under the names "Hawaiian Springs (TM)." The company draws its water from a well located at the base of the Mauna Loa volcano in Kea'au on the Big Island of Hawaii. The water is "bottled at the source" in polyethylene therephthalate plastic bottles, which are manufactured at the company's bottling facility. This on-site bottle manufacturing operation enables the company to reduce its packaging costs while at the same time improving its quality control, inventory management and delivery scheduling. The company markets its water on the basis of superior quality and taste and on the worldwide reputation of Hawaii. The company has met all Food and Drug Administration requirements for the labeling of its water as "bottled at the source" and "natural." "Bottled at the source" signifies that the water is pumped directly from the source to the bottling facility, thereby eliminating handling and transportation procedures which might lead to contamination. "Natural" signifies that the chemical composition and mineral content of the bottled water are the same as those at the source. |
| Competition |
| The bottled water industry is highly competitive, with numerous competitors vying to differentiate themselves with respect to a product often perceived as generic by consumers. Barriers to entry may be low at certain local levels, but increase significantly at the national and international levels because of the large marketing and transportation costs associated with obtaining and maintaining a presence at such levels. The principal bases of competition in the industry are price, brand recognition, water source and packaging. The company seeks to develop brand recognition based upon its unique water source. The company's pricing strategy is to price its product at or slightly below the price for other premium international brands. The company desires to establish its product on a national and international level. On both bases, the company competes primarily with large, established foreign and domestic companies, all of which have significantly greater financial and other resources than the company. |
| Business Plan |
| The company's objective is to become a leading provider of premium quality bottled water on a national and international basis. The company plans to achieve this objective by expanding its presence in its current markets, entering new geographic markets and establishing distributor relationships as well as strategic distribution alliances with other national or international beverage companies in order to take advantage of of their established distribution networks. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay indebtedness including accrued interest, incurred in connection with the Bridge Financing,; to repay other indebtedness owed to stockholders and other investors; to pay deferred compensation and consulting fees; for improvements to plant and equipment; and for working capital and general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Hawaii Brewer | 45.60% | 20.26% |
| HSC, Inc. | 26.83% | 11.92% |
| Mayo Water Co., Inc. | 10.06% | 4.47% |
| Keijiro Sorimachi | 7.45% | 3.31% |
| Officer Name | Title | Age |
| Marc Miyahira | Chief Financial Officer | 37 |
| Marcus Bender | President, Chief Executive Officer and Director | 47 |
| Brian Barbata | Secretary Director | 51 |
| Tate Robinson | Vice President, Administration | 49 |
| Wayne Addison | Vice President, Domestic Sales | 53 |
| # of Units: | 2,000,000 | |||
| Unit Ticker: | HNWCU | Unit Price: | $4.00 | |
| Warrant Ticker: | HNWCW | Warrant Price: | ||
| Warrant Exercise Date: | Warrant Exercise Price: | |||
| Warrant Expiration Date: | ||||
| Warrant Detachable: | Yes | Warrant Detach Date: | ||
| Warrant Callable: | No |
| Unit Composition: 1 Common Share + 1 Redeemable Warrant |
| Warrant Entitlement: 1 Common Share |