Two-year deal with Lincoln Park Capital has initial $50,000 tranche
By Devika Patel
Knoxville, Tenn., Sept. 3 - Montalvo Spirits, Inc. said it has arranged a $10 million stock purchase agreement with Lincoln Park Capital Fund, LLC. It has already raised $50,000 at a purchase price of $0.50 per share.
The company will sell common shares to Lincoln Park over two years.
"We are pleased about this financing agreement as it gives us flexible access to capital to support and accelerate the growing distribution pipeline of our products as well as to continue to develop and acquire existing products," chief executive officer Alex Viecco said in a press release.
"It will give our current and prospective suppliers and wholesale distribution partners comfort to know the company has access to the capital needed to properly develop and market our products. To minimize dilution for our current investors, we have opted for an approach that allows us to access capital incrementally and as needed over a long period."
The Moorpark, Calif., company develops, markets and distributes alcoholic beverages.
| Issuer: | Montalvo Spirits, Inc.
|
| Issue: | Stock purchase agreement
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| Amount: | $10 million
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| Tenor: | Two years
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| Warrants: | No
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| Investor: | Lincoln Park Capital Fund, LLC
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| Pricing date: | Sept. 3 (for $50,000)
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| Stock symbol: | OTCBB: TQLA
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| Stock price: | $0.28 at close Aug. 30
|
| Market capitalization: | $23.55 million
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