By Devika Patel
Knoxville, Tenn., June 25 - Drinks Americas Holdings, Inc. settled a $3 million private placement of discounted debentures on June 19, according to an 8-K file Thursday with the Securities and Exchange Commission.
The debt was structured as a $4 million four-year non-interest bearing debenture, with a 25% original issue discount. The discount, if the note reaches maturity, equals an annual interest rate of approximately 8%.
In addition, the investor will receive five-year warrants for 2.5 million common shares, which are exercisable at $0.35 per share.
Proceeds will be used for growth.
Located in Wilton, Conn., Drinks Americas distributes alcoholic and non-alcoholic beverages.
| Issuer: | Drinks Americas Holdings, Inc.
|
| Issue: | Debentures
|
| Amount: | $4 million
|
| Maturity: | Four years
|
| Coupon: | 0%
|
| Price: | 75 ($3 million)
|
| Yield: | 8% (approximate)
|
| Warrants: | For 2.5 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.35
|
| Settlement date: | June 19
|
| Stock symbol: | OTCBB: DKAM
|
| Stock price: | $0.15 at close June 19
|
| Market capitalization: | $11.69 million
|
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