Global Beverage Solutions (GBVS:OTCBB) continues to trend higher this week with penny investors pushing the share price up on stock buy back news earlier in the week. Global Beverage Solutions announced that the company has entered into an agreement to repurchase 60,500,000 shares of its common stock from XStream Beverage Network, Inc. The shares were originally issued to XStream Beverage as part of Global Beverage's acquisition of Beverage Network of Maryland, Inc., in February 2007.
Global Beverage issued a convertible note in the principal amount of $700,000 to XStream Beverage for the repurchase of the shares. The convertiable note will mature on October 31, 2008. Under the terms of the agreement, if Global Beverage defaults on the note, the holder of the note has the option to convert the outstanding principal and any accrued interest, into shares of Global Beverage's common stock. Global Beverage must make a $500,000 payment under a related note on or before May 1, 2008 or wil be in default.
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