The Alkaline Water Co. Inc. (OTCQB: WTER) completed a $2.97 million private placement, with proceeds being used to pay down debt and expand operations.
The Scottsdale-based company develops a proprietary electrolysis beverage process to make Alkaline88, which includes Himalayan minerals.
Of the $2.97 million raise, $1.5 million went to repay loans from Neil Rogers and Turnstone Capital Inc.
The rest will be used to manage and develop operations and sales of the company’s Alkaline88 product lineup, which is sold in 500 ml, 700 ml, 1-liter and 1-gallon bottles.
Steven Nickolas, president and CEO of Alkaline Water Co., said the funds will allow the company to expand manufacturing.
“In some cases we’re doubling and tripling their capacity to make our water,” he said.”We’re buying more inventory and we’re adding more equipment because the demand of our water just doesn’t seem to stop.”
He said sales were under $10,000 a month during the first quarter of 2013, surging to more than $700,000 a month by September 2015.
The company currently has Alkaline88 product in more than 20,000 stores, including Albertsons, Safeway,7-Eleven, Fry’s Food Stores, Whole Foods Markets and Associated Food Stores.
Nickolas said he plans to be in 30,000 stores within the next 12 months.
He said his company is responsible for employing nearly 100 people, including the people who work at the water bottling plants that the company has contracts with.
For his own company, he recently hired three people, and plans to hire another handful to handle marketing, logistics and accounting.
Phoenix Business Journal