MIAMI, Aug. 16, 2018 /PRNewswire/ -- Cool Holdings, Inc.
(NASDAQ: AWSM) today announced that it has completed an exchange of
$11.4 million of outstanding debt and
related accrued interest into approximately 3,110,000 units at a
price of $3.68 per unit. Each
unit was comprised of (i) one share of common stock or 0% Series A
Preferred stock of the Company and (ii) a warrant to purchase one
share of common stock of the Company with an exercise price of
$3.56 per share. The warrants are
exercisable beginning six months after issuance and expire three
years from the date of issuance. Each share of preferred
stock is convertible into common stock on a one-for-one
basis. The exchange of units for outstanding debt and related
accrued interest was made in reliance on the exemption from the
registration requirements of the Securities Act of 1933, as amended
(the "Act"), provided by Section 3(a)(9) of the Act., and all of
the securities issued in the transaction are "restricted
securities.," as defined in Rule 144(a)(3), promulgated under the
Act. Following the transaction, the Company now has 7,202,284
common shares outstanding.
Commenting on the exchange, Mauricio
Diaz, Chief Executive Officer of Cool Holdings stated: "We
are pleased to complete this transaction that significantly
enhances our capital structure, eliminates future debt service
requirements and significantly improves our balance sheet. We
are now moving forward with our plans to grow our chain of OneClick
retail stores into new geographic regions and raise additional
working capital to fuel sales growth."
About Cool Holdings, Inc.
Cool Holdings is a Miami-based
company focused on premium retail brands. It is currently
comprised of OneClick®, a chain of retail stores and an
authorized reseller under the Apple® Premier Partner,
APR (Apple® Premium Reseller) and AAR MB
(Apple® Authorized Reseller Mono-Brand) programs;
Cooltech Distribution, an authorized distributor to the
OneClick® stores and other resellers of
Apple® products and other high-profile consumer
electronic brands; and verykool®, a brand
of wireless handsets, tablets and related products the Company
sells to carriers, distributors and retailers in Latin
America. Additional information can be found on its website at
www.coolholdings.com.
Forward-looking and cautionary statements
Forward-looking statements in this press release and all other
statements that are not historical facts are made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements, including those related to expansion of
our stores in various geographic regions, optimization of inventory
levels, increases in sales and profitability, deleveraging our
balance sheet, acquisitions, and continuation of our license
agreements with Apple®, involve factors, risks, and
uncertainties that may cause actual results in future periods to
differ materially from such statements. There are a number of
factors that could cause actual events to differ materially from
those indicated by such forward-looking statements, including
actions by third parties, such as Apple®. These factors include,
but are not limited to, risks arising from prevailing market
conditions and the impact of general economic industry or political
conditions in the United States or
globally. A list and description of these and other risk factors
can be found in the Company's most recent Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K, which can be reviewed at www.sec.gov. These forward-looking
statements speak only as of the date of this release and we
undertake no obligation to publicly update any forward-looking
statements to reflect new information, events or circumstances
after the date of this release.
All product names, logos, and brands are property of their
respective owners. All company, product and service names used in
this website are for identification purposes only. Use of these
names, logos, and brands does not imply endorsement.
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SOURCE Cool Holdings, Inc.