COASTAL INTGRTD SVCS (OTCMKTS:COLV) has recently announced that it expects to receive a total of $4.5 million for its marketing, distribution and production budget, from Laluna Services. The announcement was part of an email to investors from stocktips. Additionally, the company has acquired Simply Lids Inc, which caters to the needs of the food service industry. The new addition to the company is expected to help strengthen COLV’s poor balance sheet.
The newly acquired Simply Lids specializes in manufacturing disposable beverage lids for the food industry. Simply Lids make use of its patented technologies to develop lids that deliver a better drinking experience to the user. Additionally, the company also boasts unique marketing opportunities that have largely remained untapped in the sector. Simply Lids had planned to become the leader in this multi-billion dollar industry, through innovation.
Not soon after, the new acquisition went ahead to sign a non-disclosure agreement with Havi Global Solutions. As per the agreement, Simply Lids would provide Havi with its state of the art products for liquid delivery. Havi often caters to the needs of large food and beverage companies and its portfolio includes outsourced projects from McDonalds and Coca Cola. Additionally, COLV announced that the two companies, as per the NDA, have already initiated talks with one of the largest fast food chains in the world.
COLV would hope that these developments are more than enough to give its balance sheet a much needed boost. As per the company’s 1Q2015 filing, COLV had just $794 in cash, no revenues and a net loss of $19,000. Havi has already requested Simply Lids to quote a price for 2.5 billion lids, but a single agreement would not be enough to bring COLV out of its misery. The company desperately needs to develop products of its own and generate revenue streams, if it wants to hold investor interest.
COASTAL INTGRTD SVCS (OTCMKTS:COLV) closed at $0.131, after trading a mere 70,000 shares to register a strong rise of 25.36% during the June 5 session.