COLORADO SPRINGS, Colo., Apr 18, 2012 — Accredited Members Holding Corporation today announced that it has signed a binding letter of intent (“LOI”) to merge with Hangover Joe’s, Inc. The merger is expected to close by June 29, 2012.
Hangover Joe’s, Inc. produces the nation’s #1 hangover recovery product. The Company’s Hangover Recovery Shot is an officially licensed product of “The Hangover” hit movie series from Warner Brothers. The six different collectible bottles are affixed with movie themed labels. The first two movies in “The Hangover” series have grossed over $1.2 Billion, another sequel is in production for release summer of 2013.
“The Hangover” Recovery Shot was formulated to help relieve the symptoms associated with overindulging, and is a morning after recovery product from consuming alcohol. The all-natural 2 oz. beverage is a leading beverage in the functional lifestyle category, and can now be found on the shelves of more than 20,000 stores in the U.S. with more being added daily, both domestically and internationally. Distribution agreements are in place with industry giants including 7-Eleven, GNC, Harrah’s, MGM Resorts International, Budweiser, and Smoker Friendly, just to name a few.
Hangover Joe’s Recovery Shot was named No. 1 new product at the “National Convenience Store Show” in 2011 and also received a four-star rating from BevNET Magazine, a leading trade magazine covering the beverage industry. Hangover recovery is the fasted growing segment of the energy shot business and the Company’s rapidly growing sales are a testament to that fact.
Hangover Joe’s Chief Executive Officer, Michael Jaynes, said of the pending merger, “We are very excited about becoming a public company and are looking forward to the additional exposure and added value to our shareholders that this merger affords us. We are excited about where the company is going and watching the category grow. It’s really amazing to see our product showing up on many different retailers counters. Plus, our growth in social media has been huge and people really love the brand.”
Co-founder and operations director Shawn Adamson said that the merger brings a lot of resources to the table for Hangover Joe’s Inc. “This just made good since for us, the company was growing so fast and we can now take the company in other directions that are needed to grow it,” Adamson said. “The upcoming months will see us doing large promotions throughout the USA and expanding abroad, plus adding brand managers and key people to help grow the brand around the country Hangover Joe’s is really the first Breakthrough Company in the recovery segment and this merger will really help with the companies long term growth.”
“The relationship with Hangover Joe’s started as a Managed Services agreement,” said JW Roth, Chief Executive Officer and Co-Founder of Accredited Members Holding Corporation (AMHC). “Over a period of time, we acquired almost one-third of the company, so this transaction makes sense to our board. Our shareholders will own 31% of this deal.”
As part of the proposed transaction, AMHC and its three subsidiaries (Accredited Members, Inc., Accredited Members Managed Services, and Worldwide Premium Packers) will be sold. A private company, Accredited Members Acquisition Corporation, will acquire all three subsidiaries, assuming all of the equity and liability associated therein.
The information in this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding Accredited Members’ capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may”, “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Actual events or results may differ materially. Accredited Members disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
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