CALGARY, ALBERTA–(Marketwire – Jan. 14, 2013) – Arrowhead Water Products Ltd. (“Arrowhead” or the “Company”) (TSX VENTURE:AWA) advises that, as previously announced, it entered into a Letter of Intent and a Right of First Refusal Agreement with a private third party purchaser (the “Purchaser”) to sell substantially all of the assets (the “Assets”) of Arrowhead (the “Transaction”). The Purchaser, Ice River Springs Water Co. Inc. (“Ice River”), has now exercised its option under the Right of First Refusal Agreement to purchase Arrowhead’s Assets for an aggregate purchase price of $1,650,000. Ice River is a private company based in Shelburne, Ontario with ten plants throughout Canada and the United States. Focused on environmental sustainability, Ice River operates a closed loop recycling facility in Ontario and is the first beverage company in North America to produce a 100% recycled bottle from self-manufactured resin.
Arrowhead anticipates that the closing of the Transaction shall occur on or about February 15, 2013 following a meeting of its shareholders called to approve the Transaction. The Transaction is also subject to certain regulatory approvals, including approval from the TSX Venture Exchange. The Company plans to hold an Annual and Special meeting of its shareholders at 10:00 a.m. on Friday, February 15, 2013 to approve annual meeting matters and the Transaction. A proxy and information circular in connection with such meeting will be mailed to all shareholders on or about January 20, 2013.
As previously announced, Arrowhead outsourced all 15-litre water bottling operations to Ice River in November, 2012 and Ice River will continue to deliver Arrowhead’s premium bottles of natural spring and reverse osmosis water to the Western Canadian retail and wholesale market. Arrowhead is and Ice River will be the only bottled water companies in Alberta currently engaged in the production, sale and distribution of the new one way, environmentally friendly, bisphenol A free, 15-litre water bottle.