Castle Brands Inc. (NYSE Amex: ROX) announced today that it has acquired
the assets of Betts & Scholl LLC, a premium wine maker formed in 2003 by
Master Sommelier Richard Betts and Dennis Scholl. Pursuant to the
transaction, Castle Brands issued to the sellers a total of 7.14 million
shares of Castle Brands Common Stock and approximately $1.1 million of
cash and notes. Dennis Scholl has joined the Castle Brands Board of
Directors, where he will serve as an independent director, and Richard
Betts has joined Castle Brands as a Vice President and head of its
newly-formed Fine Wine Division.
The Fine Wine Division has been created to market and sell a select
portfolio of premium wines from around the world. As part of its fine
wine strategy, Castle Brands will seek to recruit and represent the
wines of a small number of premium, like-minded brand owners and
wineries. The goal is to establish enough high quality wine expressions
to provide a reasonable offering to customers but limited in number so
each brand receives the attention it deserves. The division will take
advantage of Castle Brands’ existing infrastructure, including its
distribution system.
John Glover, Chief Operating Officer of Castle Brands, said, “We are
very excited that Richard and Dennis will be joining Castle Brands and
that we will be distributing Betts & Scholl’s premier products going
forward. Together, Richard and Dennis have forged relationships with
growers and winemakers around the world to produce complex, balanced
wines true to their terroir. Their collaboration has shown a flair for
memorable winemaking, innovation, and creative marketing approaches such
as art-as-packaging. Richard is a well-known Master Sommelier and
celebrity in wine and food circles and the addition of Richard and
Dennis gives instant credibility to Castle Brands’ efforts in the wine
industry.”
Dennis Scholl added, “Betts & Scholl has been a great partnership. We
like to call it ‘Richard and Dennis’ wild ride.’ Now we’ve reached a
critical tipping point: either we have to grow internally or seek a
strategic partner to help us take our wines to the next level. Castle
Brands is the missing link.”
Each bottle of Betts & Scholl features the artwork of internationally
renowned contemporary artists, a specialty of art collector and
entrepreneur Dennis Scholl. Betts & Scholl wines include Grenache, Syrah
and Riesling from Australia, Syrah from California, and Hermitage Blanc
and Rouge from France. For additional information, see www.bettsandscholl.com.
About Castle Brands Inc.
Castle Brands is an emerging developer and international marketer of
premium branded spirits within five categories of the spirits industry:
vodka, rum, whiskey, liqueurs and tequila. Castle Brands' portfolio
includes, Boru® Vodka, Gosling's Rum®, Pallini® LimoncelloTM,
RaspicelloTM and PeachcelloTM, Knappogue Castle
Whiskey®, Clontarf® Irish Whiskey, Jefferson'sTM, Jefferson's
Presidential SelectTM and Jefferson's Reserve® Bourbon, Sam
Houston® Bourbon, Celtic Crossing® Liqueur, Brady's® Irish Cream and
TierrasTM tequila. Additional information concerning the
company is available on the company’s website, www.castlebrandsinc.com.
Forward Looking Statements
This press release includes statements of our expectations, intentions,
plans and beliefs that constitute "forward looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and are intended to come within
the safe harbor protection provided by those sections. These statements,
which involve risks and uncertainties, related to the discussion of our
business strategies and our expectations concerning future operations,
margins, profitability, liquidity and capital resources and to analyses
and other information that are based on forecasts of future results and
estimates of amounts not yet determinable. You can identify these and
other forward-looking statements by the use of such words as "may,"
"will," "should," "expects," "intends," "plans," "anticipates,"
"believes," "thinks," "estimates," "seeks," "expects," "predicts,"
"could," "projects," "potential" and other similar terms and phrases,
including references to assumptions. These forward looking statements
are made based on expectations and beliefs concerning future events
affecting us and are subject to uncertainties, risks and factors
relating to our operations and business environments, all of which are
difficult to predict and many of which are beyond our control, that
could cause our actual results to differ materially from those matters
expressed or implied by these forward looking statements. More
information about these and other factors are described under the
caption "Risk Factors" in Castle Brands' Annual Report on Form 10-K, as
amended, for the year ended March 31, 2009, and its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2009, filed with the Securities
and Exchange Commission.
When considering these forward looking statements, you should keep in
mind the cautionary statements in this press release and the documents
incorporated by reference. New risks and uncertainties arise from time
to time, and we cannot predict those events or how they may affect us.
We assume no obligation to update any forward looking statements after
the date of this press release as a result of new information, future
events or developments, except as required by the federal securities
laws.
Sard Verbinnen & Co
Paul Caminiti/Jonathan Doorley
212-687-8080
or
Bieler
Communications
Mira M. Bieler, 415-990-9121