Marley Coffee Secures Up to $4 Million of Additional Funding
Jammin Java Corp., which does business as Marley Coffee, a sustainably grown, ethically farmed and artisan roasted gourmet coffee, announced that it has closed on agreements with two financial institutions – TCA Global Credit Master Fund and Fairhills Capital Management – that will provide the company with access to up to $4 million of new funding. Jammin Java intends to use the new financing to support North American and international expansion of Marley Coffee as well as for other general corporate purposes.
“We are very pleased to have TCA and Fairhills join the Marley Coffee movement as we continue to build our business and strengthen our company,” said Rohan Marley, chairman, Marley Coffee. “We look forward to another year of growth as we establish new channels of distribution for our products.”
“As we outlined in our Corporate Update in June, we’ve had a year of important milestones as we work to increase our market share and bring the Marley Coffee brand and products to customers worldwide,” said Brent Toevs, CEO, Marley Coffee. “The reality is that we are executing on numerous initiatives, and with this financing in place we plan to strategically increase our workforce to successfully implement these business-building programs and continue our growth and focus on delivering long-term value to shareholders. We are happy to be working with TCA and Fairhills to provide the financial flexibility and resources to build upon our momentum.”
The company has signed a credit agreement with TCA Global Credit Master Fund (TCA), which seeks to provide financing to small, growing, private and listed companies. The credit agreement provides the company the right to borrow, from time to time, up to $2 million from TCA, subject to the value of eligible accounts receivable the company provides TCA the rights to in order to secure the repayment of the amounts borrowed under terms of the credit agreement. The credit agreement with TCA has a term of one year.
Jammin Java has also entered into an equity line of credit Investment Agreement with Fairhills Capital Management, an investment management firm. The financing agreement allows the Company to issue and sell up to $2 million worth of its common stock to Fairhills Capital. The Investment Agreement provides the company the right to provide Fairhills a put notice and require Fairhills to purchase shares of the company’s common stock from time to time, up to a maximum number of shares equal to 200% of the average daily volume (U.S. market only) of the company’s common stock for the ten trading days prior to the applicable put notice date. The purchase price of shares to be paid by Fairhills for the shares purchased will be equal to a 20% discount to the average of the three (3) lowest bid prices during the 10 trading days immediately prior to Fairhills’ receipt of the put notice. The agreement has a term of 36 months after such date, unless earlier terminated in accordance with the Investment Agreement.