Message #19 From:
NewsBot Date: October 31, 2005 02:00:00 AM
CRGO News Cargo Connection Logistics Holding, Inc. Signs Option Agreement to Sell Beverage Formulas
INWOOD, N.Y.--(BUSINESS WIRE)--Oct. 31, 2005--Cargo Connection Logistics Holding, Inc. (OTCBB:CRGO), today announced that it has entered into an option agreement with Healthy Body Beverages, LLC, a wholly owned subsidiary of Augusta Holdings, LLC, to sell its ChampionLyte(R) beverage formulas.
Under the terms of the agreement, the Illinois-based Healthy Body Beverages will pay Cargo Connection Logistics Holding, Inc. $25,000 for a one-year option to purchase the rights to the formulas of the isotonic sports drink, ChampionLyte(R). If Healthy Body executes the option any time during the option period, it will pay Cargo Connection Logistics Holding an additional $225,000 plus three (3%) percent of the net profits derived from the sale of ChampionLyte(R) for a three-year period from the date of the closing. Healthy Body can extend the purchase option for an additional six months by paying an additional $25,000.
"While we have never intended to operate the beverage company, we've always believed it is a valuable asset," said Cargo Connection CEO Jesse Dobrinsky. "We've entertained several offers and we feel it is in the best interests of our shareholders to proceed with Healthy Body. This could equate into a significant cash infusion to the company as well as residual income as the result of our participation in future sales."
Healthy Body Beverages, LLC has developed an extensive strategy to market and distribute the product through identified retail and wholesale channels as well as develop a full line of private label beverages.
"We are pleased to have the opportunity to develop and market such a healthy product within the isotonic sports drink category," said Healthy Body Beverages, CEO Richard DiStasio. "We see a great demand for this product based upon a consumer market focused on the consumption of healthy products containing no sugar, carbs or calories."
ChampionLyte(R), was the first completely sugar-free entry into the multi-billion dollar isotonic sports drink market. It is a sports drink with no sugar, calories, sorbitol, saccharin, aspartame, caffeine or carbonation. The product, which is available in five flavors, orange, lemon-lime, fruit punch, blue raspberry and pink lemonade, replaces essential fluids and electrolytes in the body after exercise.
Cargo Connection Logistics Holding, Inc. consists of Cargo Connection Logistics Corp. and Mid-Coast Management, Inc., which are both headquartered in Inwood, NY. The Company also has offices in Atlanta, Charlotte, Chicago, Columbus, Miami, New York and Pittsburgh. The companies provide a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. Currently the two companies have a total of 90 employees.
Additional information about Cargo Connection can be obtained at its website http://www.cargocon.com
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
