The letter of intent provides additional distribution rights for the Company in parts of Tennessee and Kentucky which include major markets, Knoxville, TN and Lexington and Louisville, KY.
Coca-Cola Refreshments US, a wholly owned subsidiary of The Coca-Cola Company, currently serves this territory.
The proposed transaction for acquiring distribution rights to the expanded territory will be accomplished by a sub-bottling arrangement with CCR under which the Company would make ongoing payments to CCR in exchange for the exclusive distribution rights in the territory.
CCR would also transfer its rights in the territory to distribute brands not owned by The Coca-Cola Company to the Company as part of the transaction.
This proposed transaction with The Coca-Cola Company is subject to the parties reaching definitive agreements by the end of 2013, with closing of the transaction expected during the latter part of 2014.
There is no assurance, however, that the definitive agreements will be reached and the closing of the proposed transaction will occur.
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