Bravo! Brands Implements Plan to Improve Financial Performance
On Friday, April 27, 2007, the Company terminated 34 of its 62 employees. These terminations included the release of Mr. Stanley Harris, who has served as the Company's Chief Marketing Officer since January 2006.
04/05/07 Bravo! Brands Inc., a brand development and marketing company that promotes and distributes vitamin-fortified, flavored milk drinks and other beverages, announced that it has commenced the implementation of a plan to restructure its business in an effort to improve its financial performance.
On Friday, April 27, 2007, the Company terminated 34 of its 62 employees. These terminations included the release of Mr. Stanley Harris, who has served as the Company's Chief Marketing Officer since January 2006.
On April 30, 2007, the Company's Board of Directors voted to terminate the employment of Roy G. Warren, who has held the position of Chief Executive Officer of the Company since May 1999 and President of the Company since May 2006. Mr. Warren will remain as a Director of the Company. The employment of Michael Edwards, who held the position of Chief Revenue Officer of the Company, also has been terminated, effective May 1, 2007.
The Company's current total monthly payroll expense has been reduced by in excess of 50%.
While cuts have been made across the board to sales personnel, executive and administrative positions, key personnel have been retained to enable the Company to move forward in implementing possible new distribution and production arrangements.
Ben Patipa, the Company's Chief Operating Officer, in commenting on the reasons for the work force reduction, said "Recent events, including disappointing revenue growth and our stock trading price, have made our efforts to obtain adequate funding to continue at our present size difficult. As a result, we must downsize. More important, however, this reduction in work force is but a part of a larger plan to restructure our business in an effort to give us a better opportunity to move toward profitability."
On April 5, 2007 the Company announced that it had engaged Cowen and Company to assist the Company in an effort to explore strategic alternatives, one of which may include investments by strategic partners.
The Company also announced that, on May 1, 2007, it closed a funding transaction with six accredited institutional investors, for the issuance and sale of 18.5 million shares of the Company's common stock to the Subscribers for $740,000. The Company also issued five year warrants for the purchase of an additional 9.25 million shares of common stock at an exercise price of $0.04 per share.
