Biodegradable plastics manufacturer Casey Container Corp. ( CSEY) today announced it has signed a $1.5 million Stock Purchase Agreement with Aruba Brands, Corp. (“Aruba Brands”), formerly Taste of Aruba (U.S.), Inc. Aruba Brands has agreed to acquire restricted Common shares equal to 19.9% of Casey Container's issued and outstanding Common shares after funding of the $1.5 million. Funding is expected to be provided in tranches completed within the 90 day requirement of the Stock Purchase Agreement.
Near completion of its own equity funding, Aruba Brands anticipates shipping its bottled water in early first quarter 2014. The two companies signed a multi-year Product Purchase Agreement previously for Casey Container to supply Aruba Brands with biodegradable PET preforms for its high-end bottled water.
According to Casey Container CEO and President Martin Nason, “Over the past nine months, Casey has been in discussions with private equity and venture capital firms, both in the U.S. and internationally. Recognizing Casey is an early-stage company in a challenging financial and economic environment, Casey has been advised to seek a lower amount of equity capital than it sought initially. Once the Company starts generating revenues, it anticipates its ability to raise additional equity capital will become significantly easier."
Nason continued, "To remove the need for purchasing expensive equipment and continue reducing its launch costs for a faster go-to-market strategy, Casey has recently established arrangements with several major bottle blow molders and manufacturers of PET preforms and other plastic resin products. Receiving this $1.5 million will enable us to aggressively begin generating revenue. We also continue to have discussions with dozens of domestic and international companies interested in EcoPure ® and eager to contract with Casey Container for their biodegradable product packaging needs."Plastics pollution and disposal is a serious international problem and market demand continues to increase. As a licensed EcoPure® provider, Casey Container management hopes to become a major market disruptor by providing biodegradable plastic packaging that has been proven to effectively biodegrade in a landfill environment. EcoPure ® is a proprietary organic biodegradable additive mixed with various plastic resins such as PET, PE, LDPE, HDPE, PP, PS, PC, EVA and EPS. It renders the plastic biodegradable without changing properties of the original polymer, which is a significant product differentiator. The product has undergone years of continual independent ASTM laboratory testing to support its claims of landfill biodegradation, unlike most unproved products in today's marketplace. Further information will be filed on Form 8-K with the Securities Exchange Commission.