MIAMI, Oct. 30, 2018 /PRNewswire/ -- Cool Holdings,
Inc. (NASDAQ: AWSM) ("Cool Holdings" or the "Company") today
announced that it has closed a private placement of convertible
securities in which it raised aggregate gross proceeds of
$4 million. The Company sold $4
million of 12% unsecured convertible notes which mature in
12 months and are convertible into shares of the Company's common
stock (the "Conversion Shares") beginning six months after issuance
at $4.25 per share. Interest on
the notes is payable in shares of common stock at the same rate at
the earlier of conversion or maturity. Investors in the notes
also received a warrant to purchase one-half share of common stock
for each Conversion Share issuable under the notes at an exercise
price of $4.25 per share. The
warrants are exercisable beginning six months after issuance and
expire three years from the date of issuance.
Commenting on the fundraising, Mauricio
Diaz, Chief Executive Officer of Cool Holdings stated: "We
intend to use the proceeds from this offering to retire existing
debt and for other working capital needs, primarily inventory for
our 17 OneClick® retail stores in Florida, Argentina and the Dominican Republic."
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.
Apple® is the registered trademark of Apple Inc.
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SOURCE Cool Holdings, Inc.