Drinks Americas Closes Private Placement for Cash Infusion of Up to $3 Million.WILTON, Conn. -- Drinks Americas Drinks Americas, a publicly traded company under stock symbol DKAM, is a beverage distribution company based out of Wilton, Connecticut. One of the more notable brands is Trump vodka. Holdings, Ltd. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: DKAM) ("Drinks Americas" or the "Company") announced today that it closed a private placement of debt to one investor (the "Investor"), with full details of the transaction to be found on the Company's disclosure on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. which was filed today with the Securities and Exchange Commission at www.SEC.gov. The transaction resulted in the immediate funding of $375,000 in cash for the Company with deferred advances aggregating $2,625,000. The debt was structured as a $4 million non-interest bearing debenture with a 25% original issue discount, which, if it reaches maturity, equates to an effective annual interest rate of approximately 8% per annum Per annum Yearly. . In addition, the Investor is to receive warrants to purchase 2.5 million shares of the Company's common stock at an exercise price of $0.35 per share. J. Patrick Kenny, the Company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We believe that this financing is very favorable for the Company especially in this challenging economic environment. The transaction will provide the Company with an immediate and near term cash infusion which will enhance our cash flow and enable us to continue to grow and expand our brands. Prominent in this growth is our imminent beer launch with Kid Rock, our growing Leyrat Cognac business, the continued growth of Trump Vodka and our rapidly growing Olfiant Vodka business, all of which this financing will help facilitate." About Drinks Americas Drinks Americas develops, owns, markets, and nationally distributes alcoholic and non-alcoholic premium beverages associated with renowned icon celebrities. Drinks Americas' portfolio of premium alcoholic beverages includes award winning Trump Super Premium Vodka, Willie Nelson's Old Whiskey River Bourbon and Olifant Vodka. Drinks Americas has formed a joint venture with Universal Music's Interscope, Geffen, and A&M Records to develop and market beverage products. This summer, the Company plans to launch a major beer initiative in association with American recording icon Kid Rock. For further information concerning Drinks Americas and the products that they represent, please visit their website at www.drinksamericas.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Except for the historical information contained herein, the matters set forth in this press release, including the description of the company and its product offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility Historical Volatility The past standard deviation of a security that is used in security analysis. Standard deviation measures the changes in the past price of a security the higher the standard deviation the more volatile the security. and low trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements. |
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