Union Dental Acquires Significant Additional Equity Investment in Drinkable Air
CORAL SPRINGS, FL--(Marketwired - October 15, 2014) - Union Dental Holdings, Inc. (UDHI) ("Union Dental") a Company that operates a 22 operatory dental practice, manages a union member network of dentists throughout the United States, and has entered into two joint venture agreements with Drinkable Air, Inc. ("Drinkable Air") announced today that it has acquired an additional equity position in Drinkable Air.
Drinkable Air recently approached Union Dental to renegotiate the original Distribution Agreement between the two parties. Union Dental had previously been granted the exclusive right to sell Drinkable Air products in the U.S. dental market and had advanced funds to Drinkable Air for the purchase of Drinkable Air products. Drinkable Air currently has a backlog of orders, and has been attempting to both reduce its liabilities and obtain capital from strategic investors while completing its financial audit.
A summary of the renegotiated terms for the Distribution Agreement by Union Dental is as follows:
Union Dental acquired 1,050,000 shares of Drinkable Air common stock
Union Dental retained the exclusive rights to sell Drinkable Air products in the U.S. dental market.
Union Dental will receive a $50 payment (the "Override") upon the sale of each Drinkable Air Chameleon 8 within the U.S. dental market.
The reduction of the Override will enable Drinkable Air distributors and other strategic partners to more aggressively market the Chameleon 8.
The increased equity ownership in Drinkable Air will enable Union Dental to capitalize on the growth of Drinkable Air's overall business rather than just within the dental market.
Dr. George Green, Chief Executive Officer of Union Dental, stated, "We are very pleased to become significant shareholders of Drinkable Air. Under the terms of our original agreement, Union Dental planned to utilize our substantial contacts and union member network in the dental market to sell the Chameleon 8 product directly. However, Drinkable Air has since developed a strong distribution and strategic partner network to sell their products and we decided to lower the override and give those distributors additional incentive to sell in the dental market. We have chosen to participate as equity investors in Drinkable Air to capitalize on the overall growth of Drinkable Air's business rather than focus on just the U.S. dental market. We also believe we are best positioned to initiate the commercial development of the Green Ozonator and also market this product once development is complete. We believe that we have enhanced shareholder value by increasing our equity investment in Drinkable Air. We look forward to our continued partnership with Drinkable Air as well as the continued success and growth of both Union Dental and Drinkable Air's businesses."
Steven J. Kairis, Chief Executive Officer of Drinkable Air stated, "We welcome Union Dental as a significant shareholder of Drinkable Air. It is a pleasure to work together for the mutual benefit of our companies. We appreciate the confidence Union Dental has shown in Drinkable Air's management team and its various products and know that confidence has been rewarded. We look forward to continuing to increase shareholder value and believe Union Dental can continue to be a strong strategic partner of Drinkable Air."
About Union Dental Holdings, Inc.
Union Dental Holdings, Inc. ("Union Dental") operates a 22 operatory full service dental practice in Coral Springs, Florida. Union Dental is the exclusive supplier of Drinkable Air, Inc.'s ("Drinkable Air") patented ozone atmospheric water generators for the U.S. dental market. Union Dental manages a union member network of dentists throughout the United States and is a leading innovator providing bacteria free water within dental operatory settings. Union Dental operates two wholly owned subsidiaries, Direct Dental Services ("DDS") and Union Dental Corp ("UDC"). DDS provides dentists with "areas of exclusivity" to participate with various unions including the Communications Workers of America ("CWA") and the International Brotherhood of Electrical Workers ("IBEW"), United Association of Plumbers and Pipe Fitters ("UA") and The Association of Flight Attendants - Communications Workers of America ("AFA-CWA"). DDS receives annual management fees from the dentists in exchange for practicing in these "areas of exclusivity" where CWA and IBEW members use the dentists' services.
About Drinkable Air, Inc.
Drinkable Air, Inc. (a Florida corporation) ("DA" or "The Company") offers to the U.S. and international markets atmospheric water generators ("AWG") which will enable people to enjoy pure, 99.9% clean water. The water supply is obtained from the humidity in the air and condensed, processed and purified through a patented process. Drinkable Air's Chameleon line of AWG's is a cost-effective and environmentally friendly solution to the world's ever-growing need for pure, clean drinking water. The Company's proprietary EnviroGuard System eliminates bacteria and purifies the water with an ozone process which oxygenates the water. This process keeps the water pure, fresh and great tasting at all times.
In addition to the AWG market, Drinkable Air has been exploring other uses of ozone to combat a multitude of problems in keeping water free of bacteria and viruses. The joint venture agreement with Union Dental was the first step in expanding the uses of ozone in the dental field and we are additionally pursuing other medical applications.
WEBSITE: www.drinkableair.com
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