US: Drinks Americas completes latest placement
Drinks Americas Holdings has raised around US$3m from a private placement.
The US-based drinks marketer said yesterday (19 December) that the placement of the non-voting, perpetual, convertible preferred stock for institutions was completed through Midtown Partners & Co.
"This equity investment, by three of our existing institutional investors, is a strong vote of confidence in our business plan, our products, and our management team," said Patrick Kenny, Drinks Americas' president and CEO. "The resultant increase to our cash position and our net worth will allow us to accelerate our marketing efforts for our new products and to increase our ability to obtain favourable commercial financing in the future."
The capital will be used to fuel the company's marketing programmes in the US, Europe, and Russia, "particularly given the unexpected acceleration of our international sales through our alliance with Recolte in Russia", Kenny added.
The transaction involved the same investors that were part of the $8m equity raise last January. Accordingly, the investors in the January financing exchanged their 4.4m shares of common stock for 8,000 shares of preferred stock, convertible into an aggregate of 16m shares of common stock. The investors' prior right to warrants for 18.9m shares was waived in exchange for the issuance of 5m shares of common stock.
Drinks Americas' portfolio includes Trump Super Premium vodka and Willie Nelson's Old Whiskey River Bourbon.
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