Scottsdale-based Yerbae Brands Corp. is now trading on the U.S. over-the-counter market, following the beverage company’s record-setting revenue in the first quarter.
Yerbae began trading on the OTCQX on June 21 under the symbol “YERBF.” The OTCQX, which is the most-regulated tier of the OTC Market Group, includes blue chip stocks, multinational and domestic companies seeking access to U.S. investors.
“Yerbae is competing in one of the largest consumed categories in the beverage industry with millions of active consumers daily, so we feel very privileged to offer our health-conscious consumers the opportunity to invest in a brand that they have come to know and love on a U.S. marketplace,” Todd Gibson, Yerbae’s co-founder and CEO, said in a statement. “With our newfound presence on the OTCQX, we are poised to expand our reach, enhance shareholder value, and foster long-term growth.”
Yerbae’s stock closed Wednesday at $1.76 a share on the OTCQX, up 2% from the previous trading day. Track the stock here.
Gibson and his wife, Karrie, co-founded Yerbae in 2017 after they discovered the benefits of yerba mate, a South American plant that contains caffeine. The couple infused it into flavored, sparkling water to create zero-calorie, zero-sugar and gluten-free energy beverages.
Prior to founding Yerbae, Todd Gibson worked for beverage brands SoBe, Monster, Fuze, NOS and Coca Cola, while Karrie Gibson created Vintage Tech Recyclers and grew it to one of the largest technology recycling companies in the nation before selling it in 2015, according to the company's website.
Yerbae has sold more than 28 million cans of its energy beverages since its inception in 2017. The company’s products are found in more than 10,000 retail locations in the nation, including grocery stores, natural food shops and at Amazon.com.
In February, Yerbae began trading on the Toronto Stock Exchange through a reverse merger in which its Canadian parent company, Yerbae Brands Corp. merged into Scottsdale-based Yerbae U.S.
Yerbae had 24 employees as of March 31, according to a management discussion and analysis filed with the Canadian Securities Administrators.
Yerbae was not immediately available for comment on its OTCQX listing.
Company reports surging Q1 revenue
Yerbae’s qualification to trade on the OTCQX market follows the beverage company’s recent growth. Yerbae reported record-breaking net revenue of $3.5 million in the first quarter, an increase of 130% compared to $1.5 million in the first quarter of 2022.
The company, however, reported a net loss of $16.5 million in the first quarter, primarily due to a one-time transaction of $12.6 million. The company had a net loss of $1.5 million in the first quarter of 2022, according to a financial statement filed with the Canadian Securities Administrators.
Yerbae had $269,000 in cash and cash equivalents as of March 31, the company’s quarterly financial statement shows.
In April, the company inked a deal with food-service company Compass Group North America to sell its energy beverages in 10,000 locations in 24 states. It also announced expansion into 185 Hannaford supermarkets in the Northeast.
The company in May received a $2.5 million accounts receivable and inventory line of credit from Michigan-based Oxford Commercial Finance.
In Yerbae’s first quarter earnings report, the company said it anticipates $12.5 million in net sales this year, which would mark a 74% increase over 2022.
"Our team remains committed to meeting and exceeding the expectations of our customers and delivering consistent growth for our shareholders," Gibson said in a statement.
