Boca drink maker Celsius raises $15M

New capital will fund ‘global growth’

Still looking toward the year it turns a profit, Boca Raton-based energy drink maker Celsius announced another $15 million strategic investment from a group led by Horizons Ventures and billionaire Li Ka-Shing.

The investor group also includes Asian singer/songrwriter G.E.M. and zVentures, the strategic investment arm of Razer, which makes gear for computer gamers.

Although the company, which went public in 2005, has yet to report a profitable year, its revenues have grown dramatically in each of the past four years, climbing from $7.7 million in 2012 to $17.2 million in 2015. Results for 2016 have not yet been filed.

The company will use the newest capital to “fund global growth and expand product innovation,” according to a news release announcing the investment.

“We are pleased to have these key strategic investors participate in this financing round,” said Chris Lai of Horizons Ventures. “With their expertise in the music, gaming and sports categories, we believe Celsius is positioned to become a strong player, particularly in the Asian market.”

Celsius’ line of fruity flavored sports drinks, comprised of vitamins, caffeine and natural extracts, have been verified in peerreviewed studies as helping users boost metabolism and lose weight, the company says.

But the company has endured a roller coaster ride since introducing the first Celsius beverage in 2005. By 2011, the company had burned through $19 million in investment money and lost a contract with Costco, cutting its revenues in half.

Majority shareholder Carl DeSantis, a South Florida entrepreneur, bought out company founder Steven Haley and replaced him as CEO with Gerry David, former executive vice president of consumer products at bio-tech company Oragenics Inc.

David helped broaden the brand’s target market from regular gym members to a more general population of fitness enthusiasts.

And in 2015, the company announced a $15.95 million investment from Horizons Venture that was set in motion by hiphop and fashion mogul Russell Simmons, who also became one of the investors.

In July, it announced its expansion into Singapore, Indonesia and Malaysia.

The company’s stock began climbing in late 2014, increasing from 50 cents on Dec. 1, 2014 to $4.323 on Thursday.