US: Celsius signs US$16m stock purchase deal
Celsius Holdings has signed a US$16m common stock purchase agreement with Fusion Capital Fund II, LLC, a Chicago-based institutional investor.
Under the agreement, the company received $500,000 from Fusion Capital on the signing of the agreement and will receive an additional $500,000 on the date that a registration statement related to the transaction is filed with the SEC.
Under the agreement, the company has the right over a 25-month period to sell shares of its common stock to Fusion Capital from time to time in amounts between $100,000 and $1m, depending on certain conditions, up to an additional $15m in the aggregate.
The purchase price of the shares will be based on the prevailing market prices of the company's shares at the time of sales without any fixed discount, and the company will control the timing and amount of any sales of shares to Fusion Capital, Celsius said.
The proceeds received by the company under the agreement will be used for marketing expenses towards building the Celsius brand, working capital and general corporate use.
"We are very pleased to have entered into this relationship with Fusion Capital, a well-respected institutional investor," said Steve Haley, CEO of Celsius. "The agreement provides Celsius with favorable terms and flexibility as to when to raise capital. We believe we are now well-positioned to grow our business."
Celsius Holdings owns the "calorie-burning" Celsius beverage.
Sectors: Soft drinks
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