Betterstuff Signs Letter Of Intent To Receive Funding
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SALT LAKE CITY, Feb. 25 /PRNewswire/ -- Richard C. Vigos, executive vice president of Fountain Fresh International (OTC Bulletin Board: FTFR) ("the Company"), doing business as BetterStuff, Inc., today announced that the Company has entered into a letter of intent with BetterStuff AG, Zurich Switzerland (the proposed Swiss licensee of the Company).
Under the letter of intent, which has received the approval of the Company's board of directors, BetterStuff, Inc. will receive financing in the amount of $1.4 million in exchange for 14,000,000 shares of restricted stock of the Company. Funding will be used for the continued operations of the Company and engineering design work.
Execution of the letter of intent comes after intense follow-up by the Company concerning potential funding scenarios, including discussions with various domestic and international companies with ties to the beverage industry. Vigos indicated that, following thorough consideration of these scenarios, the transaction with the Swiss group represented the best and most obvious decision for the Company and its shareholders.
Pursuant to the letter of intent, the Swiss group has also agreed to provide additional funding to complete a four-phase design project of the beverage center product of the Company, which will be conducted by IDEO Product Development (Chicago). IDEO was instrumental in creating the new exterior design of the BetterStuff beverage center and has substantial experience in systems design and engineering.
The Swiss group has also committed in the letter of intent to provide additional funding for the manufacture of redesigned beverage center prototypes and for the ramp-up of production and distribution of these centers. The additional funding is contingent upon achieving predetermined performance requirements within budgets to be mutually agreed upon between the parties to the letter of intent.
Vigos noted that one of the most positive aspects of the alliance with the Swiss group is that the principals and engineers of BetterStuff AG are very familiar with the BetterStuff technology and possess engineering resources to facilitate upcoming phases of technical improvements to the new beverage center. Another advantage is that BetterStuff AG has worked with the new generation beverage-center machine at a beta-test site in Switzerland for the past several months. Its knowledge of the BetterStuff product is superior to all other groups who have examined providing funding to the Company.
The transaction outlined in the letter of intent will enable the Company to move forward and to undertake the development of a new generation beverage center, which could significantly impact the future of the beverage industry.
No assurance can be given that the transaction represented by the letter of intent will be successfully completed. The performance of the agreement is contingent upon various factors beyond the control of the Company. Though certain aspects of the Company's business will be pursued immediately, the closing of the transaction may not take place until May 31, 1998.
Fountain Fresh International, under the trade name BetterStuff(TM), is a manufacturer and worldwide marketer of in-store beverage machines, offering value-oriented, self-serve soft drinks and purified drinking water. SOURCE BetterStuff, Inc.
02/25/98 /CONTACT: Richard C. Vigos, Executive Vice President of BetterStuff, Inc., 801-538-0060; or Jordan Richard Assoc., 801-595-8611/
/Web site: jordanrichard.com (FTFR) CO: BetterStuff, Inc. ST: Utah IN: FOD SU:
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