CASTLE BRANDS STRIKES A DEAL
Castle Brands said yesterday that it has begun negotiations with unnamed investors for the ownership of around $21 million of common stock and warrants. The company said it intends to use the proceeds for further brand development and acquisitions, but didn't give any further details. The deal is expected to be finalized by May 4, according to a statement issued by Castle.
"This transaction will substantially improve the financial position of the company and at the same time significantly enhanced our shareholder base," said Castle's chief Mark Andrews.
The terms include the sale of 3.5 million shares of unregistered common stock at a price of $5.97 per share and the issuance of 1.4 million warrants with a price of $6.57 per share. The warrants will expire five years from the date they are issued.
"This transaction will substantially improve the financial position of the company and at the same time significantly enhanced our shareholder base," said Castle's chief Mark Andrews.
The terms include the sale of 3.5 million shares of unregistered common stock at a price of $5.97 per share and the issuance of 1.4 million warrants with a price of $6.57 per share. The warrants will expire five years from the date they are issued.
posted at 1:09 PM
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