MONTREAL, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Prime Drink Group Corp. (CSE: PRME) ("Prime" or the "Company") is proud to announce that it has entered into a non-binding letter of intent (the "Partnership LOI") with 9435-7639 Québec Inc., doing business as GefCo ("GefCo"), a company forming part of Les Entreprises du Groupe Geloso ("Geloso").
Pursuant to the Partnership LOI, Prime and Geloso will form a strategic partnership for the distribution, marketing, production and development of the Beach Day Every Day ("BDED") business across the rest of Canada, excluding Quebec, as well as the United States and Europe (the "Territory").
This collaboration brings together two Quebec companies with a shared ambition: to build a strong brand, develop new markets and establish Beach Day Every Day as a leading brand in its category in Canada and internationally.
With several decades of experience, Geloso has recognized expertise in the development, production, marketing and distribution of beverages and has a significant presence in Canada, the United States and Europe. For Prime, this partnership represents a major milestone in its growth strategy and will enable BDED to benefit from Geloso's operational expertise, production capacity and commercial strength.
A 50/50 Structure to Develop BDED
Pursuant to the Partnership LOI and subject to the completion of the transaction involving the acquisition of all of the issued and outstanding shares of Prime Capital Investments Inc., announced on August 26, 2026 (the "Transaction"), Prime and Geloso intend to incorporate a new corporation ("Newco"). Newco will be owned fifty percent (50%) by Prime and fifty percent (50%) by Geloso and will be managed by Mr. Aldo Geloso.
Prime will contribute the BDED assets to Newco, while Geloso will be responsible for the operation and management of the BDED business across the rest of Canada, the United States and Europe.
The parties also intend to negotiate and enter into a definitive agreement granting Geloso exclusivity with respect to distribution, co-manufacturing, agency, pricing and bottling in the Territory for an initial term of five (5) years. Geloso and its subsidiaries are arm's-length parties to the Company.
Accelerating a Brand That Is Already Achieving Significant Success in Quebec
Beach Day Every Day is already experiencing significant success in Quebec, where the brand generates tens of millions of dollars in annual sales in collaboration with a leading player in the Canadian brewing industry.
Prime believes that combining the strength of the BDED brand with Geloso's expertise represents a significant opportunity to replicate this success across the rest of Canada, the United States and Europe.
Jean Gosselin, Chief Financial Officer of Prime, commented: "We are extremely proud to partner with Geloso. Their recognized expertise, production capacity and extensive network are major assets in accelerating the development of Beach Day Every Day across the rest of Canada, the United States and Europe. BDED is already experiencing remarkable success in Quebec. By combining the strength and potential of our brand with Geloso's know-how, experience and commercial reach, we believe we can replicate this success on a much larger scale.
"This partnership also represents an important milestone in our expansion strategy. Our ambition is clear: to establish Beach Day Every Day as a leading brand in its category across the rest of Canada, the United States and Europe, while creating sustainable long-term value for our shareholders.
Conditions to Completion of the Partnership
Completion of the strategic partnership remains subject to the satisfaction of certain conditions precedent, including, but not limited to:
- the completion, to Geloso's satisfaction, of due diligence on the BDED business;
- the completion of the Transaction;
- the receipt of all required third-party consents and approvals; and
- the negotiation and execution of definitive distribution agreements and related agreements concerning the strategic partnership and Newco.
There can be no assurance that the strategic partnership will be completed on the terms currently contemplated or at all.
This partnership represents another important step in Prime Drink Group's ambition to build a platform of strong Quebec beverage brands capable of thriving across the rest of Canada, the United States and Europe.
About Geloso
Geloso is part of a Quebec-based family-owned group that has operated in the beverage industry for more than 60 years and specializes in the creation, production, marketing and distribution of alcoholic and non-alcoholic beverages.
The group has more than 50 brands and more than 250 products manufactured in Quebec, employs more than 500 people and has facilities and operations in Canada, the United States and Europe.
Its portfolio includes recognized brands such as Clubtails, Johny Bootlegger, Poppers, Pepito Sangria and Bulles de Nuit. Geloso also collaborates with several recognized brands and partners in the beverage industry.
With its expertise in innovation, production, marketing and distribution, Geloso represents a leading strategic partner to support the development of Beach Day Every Day across the rest of Canada, the United States and Europe
About Prime Drink Group
Prime Drink Group Corp (CSE: PRME) is a Québec-based corporation focused on becoming a leading diversified holding company in the beverage, influencer media and hospitality sectors.
For further information, please contact:
Jean Gosselin, CFO
Phone: (514) 394-7717
Email: info@prime-group.ca
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations (including negative and grammatical variations) of such words and phrases or statements that certain acts, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information in this press release may include, without limitation, statements relating to: (i) the completion of the strategic partnership with GefCO; (ii) the incorporation and operation of Newco; (iii) the negotiation and execution of definitive agreements in connection with the strategic partnership; (iv) the intended benefits of the transactions contemplated herein; (v) the characterization of BDED as a leading, premium and fast-growing brand and the anticipated positive benefits of its expansion activities, and (vi) the Company's objective of becoming a leading diversified holding company in the beverage, influencer media and hospitality sectors.
These statements are based upon assumptions that are subject to significant risks and uncertainties, including risks regarding the beverage industry, the ability of the parties to satisfy the conditions precedent to closing, the ability of the Company to raise capital on acceptable terms, reliance on personnel, the receipt of all regulatory, corporate, and shareholder approvals, market conditions, general economic factors, and the equity markets generally. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance of Prime may differ materially from those anticipated and indicated by these forward-looking statements. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Prime believes that the expectations reflected in forward-looking statements are reasonable, they can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, Prime disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6878ca08-f8d1-4568-8085-267806e6e5d9
