MIAMI, Aug. 20, 2018 /PRNewswire/ -- Cool Holdings, Inc.
(NASDAQ: AWSM) today announced that it has expanded its Apple
partnership by completing the acquisition of a chain of seven
OneClick® retail stores in the Dominican Republic.
OneClick® is a certified Apple® partner and
authorized reseller of Apple® products and other
high-profile accessory brands. The acquisition resulted from
the exercise of an Option Agreement negotiated as part of the
Merger with Cooltech Holding Corp. ("Cooltech") which closed
March 12, 2018. As outlined in the
Option Agreement, as amended, consideration for the option exercise
consists of $4.3 million plus 625,077
shares of Cool Holdings common stock issuable to the shareholders
of Cooltech at the time of the Merger. The $4.3 million of cash consideration consists
of $3.7 million of cash previously
advanced to the seller, the repayment obligation of which was
cancelled, and the assumption by Cool Holdings of $600,000 of debt, which is due in installments in
October 2018 and April 2019.
All of the common stock issuable in connection with the option
exercise will be "restricted securities," as defined in Rule
144(a)(3), promulgated under the Securities Act of 1933.
![OneClick Agora Mall Store in Santa Domingo, Dominican Republic OneClick Agora Mall Store in Santa Domingo, Dominican Republic](https://mma.prnewswire.com/media/732357/OneClick_Agora_Mall_Store.jpg)
Commenting on the acquisition, Mauricio
Diaz, Chief Executive Officer of Cool Holdings, stated: "The
acquisition of the Dominican
Republic stores has been contemplated for some time, and we
are pleased to finally complete the transaction. This now
brings our total store count to 16, including the 7 new stores in
the Dominican Republic, our 6
stores in Argentina and 3 stores
in Florida. OneClick in the Dominican Republic has the first ever APR
(Apple® Premium reseller) as its flagship store in Agora
Mall in Santo Domingo. In
addition, Galeria 360 in Santo
Domingo and Blue Mall in Punta
Cana have undergone a thorough remodeling process to become
the first AAR (Apple® Authorized Reseller Monobrand)
stores in the Dominican Republic. The remaining 4 stores
(Blue Mall, Sambil and Piantini in Santo
Domingo, and Santiago de los
Caballeros) will be remodeled in the upcoming months. Through this
acquisition we expect to leverage our resources, expertise and
management talent to grow our revenue base as we work to drive our
Company to profitability."
The Company notes that following the issuance of the shares of
common stock under the transaction, it will have 7,086,743 common
shares outstanding. The Company further notes that it
erroneously stated its outstanding share capital in a previous
press release dated August 16, 2018,
which this press release corrects.
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.