True Drinks wraps $211,000 of $3 million placement of 12% convertibles

Deal sells convertible promissory notes along with five-year warrants

By Devika Patel

Knoxville, Tenn., Oct. 17 - True Drinks Holdings, Inc. raised $211,000 in a seventh tranche of a $3 million private placement of 12% convertible promissory notes on Oct. 10 and Oct. 16, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal has a $300,000 greenshoe and raised $450,000 on June 20, the pricing date, $625,000 on June 27, $340,000 on July 18, $300,000 on Aug. 1, $225,000 on Aug. 23 and $200,000 on Sept. 12 and Sept. 16. Axiom Capital Management, Inc. is the agent.

The notes mature on Nov. 29, 2013, which may be extended to Feb. 28, 2014 and then to May 31, 2014. The notes will convert to common shares at $2.00 per share.

In addition, the first-tranche investors received warrants for 240,455 shares, the second-tranche investors received warrants for 426,136 shares, the third-tranche investors received warrants for 231,818 shares, the fourth-tranche investors received warrants for 204,546 shares, the fifth-tranche investors received warrants for 153,409 shares, the sixth-tranche investors received warrants for 136,363 shares and the seventh-tranche investors received warrants for 143,863 shares. Each warrant is exercisable at $1.10 for five years.

The conversion price of the notes and strike price of the warrants are 112.77% and 17.02% premiums to the June 19 closing share price of $0.94.

Proceeds will be used for clinical trials, follow-on financings and general working capital purposes.

The beverage company is based in Irvine, Calif.

Issuer:	True Drinks Holdings, Inc.
Issue:	Convertible promissory notes
Amount:	$3 million
Greenshoe:	$300,000
Maturity:	Nov. 29, 2013
Coupon:	12%
Conversion price:	$2.00
Warrants:	For 1,536,590 shares
Warrant expiration:	Five years
Warrant strike price:	$1.10
Agent:	Axiom Capital Management, Inc.
Pricing date:	June 20
Settlement date:	June 20 (for $450,000), June 27 (for $625,000), July 18 (for $340,000), Aug. 1 (for $300,000), Aug. 23 (for $225,000), Sept. 12 and Sept. 16 (for $200,000), Oct. 10 and Oct. 16 (for $211,000)
Stock symbol:	OTCBB: TRUU
Stock price:	$0.94 at close June 19
Market capitalization:	$14.88 million

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