Castle Brands Inc. (AMEX:ROX), an emerging international premium spirits company, announced today that it has closed the private placement announced on April 19, 2007. The private placement, consisting of $21 million of common stock and warrants sold to certain institutional investors, closed yesterday, May 8. The Company intends to use the proceeds from the offering for further brand development, acquisitions, and other corporate purposes.
Terms of the financing, as specified in the securities purchase agreement dated April 18, 2007, include the sale of approximately 3.5 million shares of unregistered common stock at a price of $5.97 per share. In addition, the private placement includes the issuance of approximately 1.4 million warrants with an exercise price of $6.57 per share. The warrants will expire five years from the date of issuance.
The securities sold in the private placement have not been registered under the Securities Act of 1933, or any state securities laws, and were sold in a private transaction under Regulation D. Unless the securities are registered, they may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. The Company is obligated to register the shares of common stock sold, and the shares of common stock issuable upon exercise of the warrants sold, for resale on a registration statement to be filed on or before June 7, 2007.
More about Castle Brands Inc.
Castle Brands is an emerging developer and international marketer of premium branded spirits within four growing categories of the spirits industry: vodka, rum, whiskey and liqueurs/cordials. Castle Brands' portfolio includes Boru® Vodka, Gosling's Rums(TM), Sea Wynde® Rum, Knappogue Castle Whiskey®, Clontarf® Irish Whiskey, Jefferson's(TM) and Jefferson's Reserve® Bourbon, Sam Houston® Bourbon, Celtic Crossing® Liqueur, Pallini® Limoncello(TM), Raspicello(TM) and Peachcello(TM) and Brady's® Irish Cream.
Terms of the financing, as specified in the securities purchase agreement dated April 18, 2007, include the sale of approximately 3.5 million shares of unregistered common stock at a price of $5.97 per share. In addition, the private placement includes the issuance of approximately 1.4 million warrants with an exercise price of $6.57 per share. The warrants will expire five years from the date of issuance.
The securities sold in the private placement have not been registered under the Securities Act of 1933, or any state securities laws, and were sold in a private transaction under Regulation D. Unless the securities are registered, they may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. The Company is obligated to register the shares of common stock sold, and the shares of common stock issuable upon exercise of the warrants sold, for resale on a registration statement to be filed on or before June 7, 2007.
More about Castle Brands Inc.
Castle Brands is an emerging developer and international marketer of premium branded spirits within four growing categories of the spirits industry: vodka, rum, whiskey and liqueurs/cordials. Castle Brands' portfolio includes Boru® Vodka, Gosling's Rums(TM), Sea Wynde® Rum, Knappogue Castle Whiskey®, Clontarf® Irish Whiskey, Jefferson's(TM) and Jefferson's Reserve® Bourbon, Sam Houston® Bourbon, Celtic Crossing® Liqueur, Pallini® Limoncello(TM), Raspicello(TM) and Peachcello(TM) and Brady's® Irish Cream.
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