As anticipated, Celsius Holdings, Inc. (OTCMKTS:CELH) has entered into negative territory after reporting multiple days of green sessions. The stock’s recent ascent pulled it in the overbought territory and thus, the decline yesterday is self-explanatory. The company had released an update a week back when it announced a strategic investment of $15,95 million.
The latest announcement
The beverage maker noted that the said investment was led by a Global Business icons, including Hong Kong-based Horizons Ventures, which is a private investment arm headed by Mr. Russell Simmons, Mr. Li Ka-Shing, and Ms. Kimora Lee. Celsius Holdings, Inc. (OTCMKTS:CELH)’s CEO Gerry David said that the company is excited to have the three business icons join its team. He added that the partnership will help the company expand its reach across consumers and will solidify its presence in domestic as well as global markets.
Other details
While this is a positive development for the company, it is important to revisit the Celsius’ historic track record. The company was primarily listed on the NASDAQ but had to withdraw from the exchange due to failing to comply with a minimum shareholder equity requirement. The company had listed on OTC marketplace during late December 2010. One of the main attractions of the company is its “negative calorie” beverage, which helps burn fat and targets people, who wish to maintain a healthy lifestyle.
The company’s financial performance too is not so disappointing as its most recent report for the fiscal year 2014 showed cash balance of $349,000 and total assets of $4.9 million. The company’s total liabilities stood at $12 million. Also, the company’s revenues are positive at $14.6 million while it reported a net loss of $2 million. The stock price of Celsius Holdings, Inc. (OTCMKTS:CELH) fell by more than 8% to $2.97 during the last session, when 70,700 shares changed hands.
