Skinny Nutritional secures standstill agreement for $15 million deal

Company sets 60-day period to discuss its investment with Trim Capital

By Devika Patel

Knoxville, Tenn., Oct. 22 - Skinny Nutritional Corp. said it has negotiated a standstill agreement with Trim Capital LLC, under which the company and investor will continue discussions regarding the company's June 28 securities purchase agreement. The deal was announced July 2.

Following discussions, the company and investor have agreed to a 60-day period during which they will discuss a plan for the investment.

Trim Capital has committed to buy $9 million of the company's preferred stock and common stock and also agreed to provide the company with a $6 million senior secured credit facility.

At the initial closing on June 28, Skinny Nutritional sold a $1 million senior secured bridge note. The company sold an additional $270,000 senior secured note on Aug. 14, which was deemed part of the initial note. The purchase agreement was to have a second closing by Aug. 28, which has not occurred.

The preferreds and common stock are being sold in units.

"The investment Trim Capital is making in Skinny Water will give the company the capital to execute its growth plan. Having access to this capital will allow us to accelerate our marketing and brand initiatives, add new product lines under the Skinny Nutritional Corp. umbrella of Skinny trademarks and build inventory levels to satisfy the demand for our products," chief executive officer Michael Salaman said in a press release on July 2.

Based in Bala Cynwyd, Pa., Skinny Nutritional markets and distributes bottled water and dietary supplements.

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