![]() |
Enron Mail |
STOCK iQ NEWS ALERT
_____________________________________________________________ MERIDIAN USA HOLDINGS OTC BB:SYMBOL:MUSD LAST SALE PRICE: $1.50 52 WEEK HIGH: $3.50 52 WEEK LOW: $0.51 SHARES OUTSTANDING: 6.38 MILLION PUBLIC FLOAT: 3.60 MILLION MARKET CAPITALIZATION: $10.20 MILLION PER SHARE DATA FISCAL QUARTER ENDED MARCH 31, 2001 CASH IN BANK AND MARKETABLE SECURITIES: $0.66 DISTRIBUTED NET LOSS: (0.32) * FORMER PRESIDENT OF YOO-HOO HIRED * MERIDIAN SPORT DRINK TAKES AIM AT $2.3 BILLION MARKET * LICENSING OF SWEET'N LOW BRAND NAME FOR SYRUP LINE * MARKETING PLAN SIMILAR TO SUCCESSFUL TEA DRINK _____________________________________________________________ MUSD (Meridian USA Holdings, Inc.) through its subsidiaries markets sugar = free syrups under the brand name SWEET 'N LOW which was licensed from Cumbe= rland Packing Corp and a sugar free sport drink called ChampionLyte. In 1998, the market for the Sport Drink (electrolyte replacement) also call= ed refresher drink constituted a market of $2.3 billion and was growing rap= idly. The average annual consumption per capita in the United States is 2.0= gallons. Although existing products in this market provide electrolyte replacement, = they also contain high levels of calories and carbohydrates.The competition= in the marketplace are Gatorade and Powerade, who between them have an ap= proximate 95% market share. Traditionally, when a sugar free product goes i= nto the market, it captures six to seven percent of the particular market s= hare, although Diet Coke has 28 percent of the market share of Coca Cola. If the company could effect a one percent penetration of the market for spo= rt drinks, they could have two dollar per share earnings with the resultan= t effect on the stock price. What follows are pertinent excerpts from the company's recent SEC filings: ChampionLyte(TM) Refresher Drinks. As it is with syrups, there have been no sugar-free products within the iso= tonic refresher drink category. This category, whose most well known produc= ts are Gatorade(R) and Powerade(R) refresher drinks, constituted a market o= f nearly $2.3 billion in 1998, with average per capita annual consumption i= n the U.S. of 2.0 gallons. (Beverage World, 1999). First, diabetics and those with medically restricted sugar intakes had no a= vailable refresher drink on the market. This group represents a sizable seg= ment of the U.S. population. Second, it is believed that persons attempting to lose weight through exerc= ise are often reluctant to consume a drink like Gatorade(R) containing hund= reds of calories right after strenuous exercising to "burn-off" those calor= ies. Their marketing efforts to introduce ChampionLyte have involved ad placemen= ts in industry trade publications, radio ads, food show and beverage show a= ppearances and establishment of a network of brokers to sell the products o= n behalf of the Company. In October 2000, they entered into a sponsorship and endorsement agreement = with Jay Fiedler, the starting quarterback for the Miami Dolphins of the N.= F.L., under which Mr. Fiedler has agreed to provide various promotional ser= vices in connection with ChampionLyte. In January 2001, they entered into a similar agreement with the world-ranke= d and former world middleweight boxing champion, Dangerous Dana Rosenblatt. ChampionLyte has also qualified for sponsorship by the Diabetes Research In= stitute sponsorship and each bottle contains that organization's seal of a= pproval. Americans spend $33 billion on weight-loss programs and products annually (= National Institute of Diabetes and Digestive and Kidney Diseases, 2000). Th= eir products are aimed directly at this market. The enormous success of products such as Diet Coke(R), SnackWell's(R) cooki= es and numerous sugar-free ice cream, candy and other products have demonst= rated the existence of a substantial market for sugar-free/reduced calorie = food products. In November 1998, they succeeded in obtaining an exclusive license for the = trademark Sweet'N Low for use on chocolate syrups. Sweet'N Low is the trade= mark under which the world's most popular sugar substitute is sold, most re= cognizably in the small, pink packets. In January 1999, they made their first shipments of Sweet'N Low brand choco= late syrup. By the end of 1999, they had expanded their customer base to mo= re than 150 customers and the products are currently available in over 16,0= 00 food outlets in the U.S. In June 1999, we entered into an agreement with Francis Anthony, the "Love = Chef" of television and magazine fame, under which Mr. Anthony agreed to de= velop recipes for the Syrup Company and represent the product to the public= . Meridian believes that Mr. Anthony's involvement has and will continue to= increase the visibility of the Syrup Company's products. Also in 1999, they obtained the right to market the Syrup as an approved pr= oduct of the Diabetes Research Institute, a national diabetes research cent= er located at the University of Miami. This approval required their product= to pass a strenuous qualification procedure at the Institute to establish = our worthiness to use the Institute's name on our products. Management believes that the quality of their products, their appeal to hea= lth-conscious and sugar-restricted consumers, the fame and reputation of th= e Sweet'N Low trademark for our syrups and our network of food brokers shou= ld enable us to continue to penetrate the retail food market. The primary consumers at whom they are directing their marketing efforts ar= e people suffering from diabetes and others with sugar restricted diets. Ac= cording to the American Diabetes Association, there are approximately 16,00= 0,000 Americans suffering from diabetes, plus another five to ten million A= mericans who are required to maintain a strict diet regimen for various med= ical conditions. In addition, millions more Americans restrict their sugar consumption in an= effort to reduce their calorie intake. All of these people form a natural = market for our products. Americans spend $33 billion on weight-loss program= s and products annually (National Institute of Diabetes and Digestive and K= idney Diseases, 2000). Our products are aimed directly at this market. The enormous success of products such as Diet Coke(R), SnackWell's(R) cooki= es and numerous sugar-free ice cream, candy and other products have demonst= rated the existence of a substantial market for sugar-free/reduced calorie = food products. Public and industry acceptance have been positive to date. On January 8, 2001, US Bancorp converted its $8,000,000 convertible note al= ong with accrued interest of $229,727 into 8,230 shares of the Company's Se= ries II Convertible Preferred Stock. RESULTS OF OPERATIONS Meridian's net sales revenues for the three months ended March 31, 2001 wer= e$239,038, as compared to $408,572 in the comparable period of 2000. Selling, general and administrative expenses increased from $441,521 in the= first quarter of 2000 to $2,108,644 in the first quarter of 2001. The ma= jor element of that increase was non cash interest and amortization costs o= f $898,605 for the three months ended March 31, 2001, associated with the c= onversion of the U.S. Bancorp note into shares of the Company's Series II C= onvertible Preferred Stock in January 2001. The remaining increases in expenses were primarily related to an increase i= n advertising and media expenses from approximately$92,000 for the three mo= nths ended March 31, 2000 to approximately $586,000 in the comparable 200= 1 period to support the Company's product lines, particularly the introduc= tion of the Company's ChampionLyte (TM) Meridian had a net loss available to common shareholders of $2,051,145 ($0= .32 per share) during the three months ended March 31, 2001, as compared to= a net loss available to common shareholders of $267,325 ($0.04 per share) = during the comparable prior period. LIQUIDITY AND CAPITAL RESOURCES Meridian's available cash and marketable securities at March 31, 2001 were = approximately $4,187,000, as compared to approximately $203,000 at March 31= ,2000. The increase in primarily attributable to the proceeds of Meridian's= issuance of its Series A Convertible Note to U.S. Bancorp Investments, Inc= . in June 2000. As a result of the U.S Bancorp financing, management believes that is has s= ufficient working capital to carry out its business plan for the operation = and expansion of its syrup business and for the introduction and grow= th of its sports refresher drink for at least the next 12 months. In addi= tion, Meridian believes that operations will increasingly contribute to ca= sh flow during the same period. StockIQ is an independent publication providing information on select compa= nies.Any company profiled by Stock IQ may pay cash or stock consideration f= or the electronic dissemination of the company's information for a specifie= d time period and/or our comments about the company and/or our development = of the company's web site. Section 17(b) of the Securities Act of 1933 requires that Stock IQ fully di= sclose the type consideration (i.e. cash, free trading stock, restricted st= ock, restricted stock with registration rights, stock options, stock warran= ts, or other type consideration) and the specific amount of the considerati= on our company receives or will receive, directly or indirectly, from an is= suer, underwriter, or dealer. No information contained in our web site or our publications should be cons= idered as a solicitation to purchase or sell the securities of the profiled= companies. Stock IQ is not a registered investment advisor or a registered securities = broker dealer. We do not undertake or represent to make investment recommen= dations or advise pertaining to the purchase or sale of the securities ment= ioned in our web site or publications. The information contained in our web site and/or our publications are caref= ully prepared by Stock IQ and are based upon sources that we believe to be = reliable. Stock IQ, however, does not guarantee the accuracy of any informa= tion contained in our web site or publications. Moreover, Stock IQ does not endorse, independently verify, or assert the tr= uthfulness or reliability of any statements or data prepared by us or the p= rofiled companies listed in our web site or publications. Investors should = not rely solely on the information contained in our web site or publication= s. Instead, investors should use the information provided on the profiled comp= anies only as a starting point for conducting additional research that will= permit them to form their own opinions regarding an investment in the prof= iled company's securities. The receipt of the information contained in our web site or publications sh= all not create, under any circumstance, any implication that there has been= no change in the affairs of the profiled company since the date of our com= ments regarding the company or the date of the profiled company press relea= ses or other information disseminated via our web site or publications. The information contained in our web site and publications may pertain to s= mall cap and/or thinly traded securities which by their very nature involv= e an extremely high degree of risk. An investment in these type of securiti= es could result in the loss of some or all of an investment in the company.= In addition, due to the illiquid nature of some of these securities, an in= vestor may find encounter difficulties in liquidating the securities. We have received no consideration for the posting and dissemination of this= report from any company or any person nor is there any agreement that we w= ill receive any compensation of any sort now or in the future. This report contains certain statements that may be deemed forward-looking = statements within the meaning of Section 27A of the Securities Act and Sect= ion 21E of the Exchange Act. All statements, other than statements of histo= rical facts, that address activities, events or developments that the compa= ny intends, expects, projects, believes or anticipates will or may occur in= the future are forward-looking statements. Such statements are based on ce= rtain assumptions and assessments made by management of the company in ligh= t of its experience and its perception of historical trends, current condit= ions, expected future developments and other factors it believes to be appr= opriate. The forward-looking statements included in this report are also su= bject to a number of material risks and uncertainties, including but not li= mited to economic, competitive, governmental and technological factors affe= cting the company's operations, markets, services and prices, and other fac= tors discussed in the company's filings under the Securities Act and the Ex= change Act. Prospective investors are cautioned that such forward-looking s= tatement are not guarantees of future performance and that actual results, = developments and business decisions may differ from those envisaged by such= forward-looking statements. _____________________________________________________________ This newsletter is published by StockiQ.com (http://www.stockiQ.com) Copyright © 2001, All rights reserved. If you would like to unsubscribe to this newsletter, please send an email w= ith REMOVE as the subject to: sharex_rejects@sharex.com
|