Coffee seller says transaction will free up cash for sales push
By Toni Weeks
San Luis Obispo, Calif., March 8 - Marley Coffee said it settled a $1.02 million claim brought by Ironridge Global IV, Ltd. by issuing common shares, according to an 8-K filed Friday with the Securities and Exchange Commission.
The debt includes past due amounts owed by Marley to various creditors in connection with trade payables, the purchase of property and equipment, prior credit agreements and attorney fees. Ironridge purchased the debt from third parties on March 5 and settled the claim with Marley on March 6 for a total of 8.85 million shares.
The transaction was intended to increase Marley Coffee's future cash flows and strengthen its balance sheet, according to a press release. Proceeds will be used to help support the company's growing sales and marketing initiatives.
"This transaction frees up a lot of cash for us to put right back into that sales push, which we hope will allow us to bring in large and small accounts," chief executive officer Brent Toevs said in the release.
"For the larger accounts, the additional cash flow will be utilized for listing fees and regional marketing efforts. For our existing accounts, we plan on putting additional cash flow right back into marketing with a goal of increasing our market share and building long-term loyalty with the plan to establish ourselves as the premiere gourmet coffee brand in those markets."
Based in Los Angeles, Marley Coffee grows artisan-roasted coffee on organic farms in Jamaica and provides the coffee to grocery, retail, online, home, service, hospitality, office and big-box store markets. Its corporate name is Jammin Java Corp.
| Issuer: | Marley Coffee.
|
| Issue: | Common shares
|
| Amount: | $1,017,744
|
| Shares: | 8.85 million
|
| Warrants: | No
|
| Investor: | Ironridge Global IV, Ltd.
|
| Settlement date: | March 6
|
| Stock symbol: | OTCBB: JAMN
|
| Stock price: | $0.33 at close March 7
|
| Market capitalization: | $27.17 million
|
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