Company: CELH
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001341766-25-000144
Chunk: 12

Company: Celsius Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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, with those of the newly issued Series B Preferred Stock. For additional information, see Note 13. Mezzanine Equity.Transaction Agreement – Rockstar Acquisition and CaptaincyOn the Closing Date of the Pepsi Transactions, the Company entered into the Transaction Agreement with Pepsi, pursuant to which (i) the Company acquired certain assets and assumed certain liabilities, comprising Rockstar in the U.S. and Canada and (ii) the Company and Pepsi commenced the Captaincy. The Captaincy is an enhanced, long-term arrangement pursuant to which Pepsi uses commercially reasonable efforts to sell, distribute, and merchandise the Company’s products in accordance with jointly developed sales, placement, and promotional priorities. On the Closing Date of the Pepsi Transactions, the Company issued Series B Preferred Stock to Pepsi and amended the terms of the Series A Preferred Stock in connection with the Rockstar Acquisition, the Captaincy, the A&R U.S. Distribution Agreement and an amended and restated distribution agreement with an affiliate of Pepsi, pursuant to which such affiliate of Pepsi continues to be the Company’s primary distributor of Celsius products in Canada and has become the Company’s primary Canadian distributor of Alani Nu’s products and Rockstar products. The transaction is subject to a customary working capital adjustment in respect of the Rockstar Acquisition. The Captaincy commenced on the Closing Date of the Pepsi Transactions and will continue during the term of the A&R U.S. Distribution Agreement. For additional information, see Note 4. Revenue, Note 5. Acquisitions and Note 12. Related Party Transactions. The Amended and Restated U.S. Distribution Agreement On the Closing Date of the Pepsi Transactions, the Company entered into the A&R U.S. Distribution Agreement with Pepsi, which amended and restated in its entirety the Original Distribution Agreement, predominantly to provide that Pepsi become the primary distributor of Alani Nu and Rockstar products. The other material terms and covenants, including termination provisions, contained in the Original Distribution Agreement remain in full force and effect in the A&R U.S. Distribution Agreement. In connection with the transition of the distribution of Alani Nu products to Pepsi, the Company is incurring fees from the termination of agreements with certain existing Alani Nu distributors. Pepsi has agreed to reimburse the Company for such distribution fees to facilitate the transition of certain distribution rights to Pepsi. For additional information, see Note 4. Revenue and Note 12. Related Party Transactions.