Subsequent to the filing of the Form N-54C, the Company intends to pursue a business model whereby it would acquire majority ownership stakes in beverage-related companies (the "New Business Model"). In this regard, the Company would remain active in the imported bottled water category and New Age beverage category through its two wholly owned entities: Aqua Maestro and Beverage Network of Maryland.
Under the New Business Model, the Company will at all times conduct its activities in such a way that it will not be deemed an "investment company" subject to regulation under the 1940 Act. Thus, it will not hold itself out as being engaged primarily in the business of investing, reinvesting or trading in securities. In addition, the Company will conduct its business in such a manner as to ensure that it will at no time own or propose to acquire investment securities having a value exceeding 40 percent of the Company's total assets at any one time.
