SAN DIEGO, CA--(BUSINESS WIRE)--Youngevity International, Inc. (OTCQX: YGYI) (www.YGYI.com), a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of gourmet coffees for the commercial, retail and direct sales channels, announced today that its wholly owned subsidiary, CLR Roasters, has completed its previously announced $4.35 million Secured Convertible Notes (the “Notes”) and Warrants (the “Warrants”) financing for a total aggregate principal amount of $4.75 million. TriPoint Global Equities, LLC acted as sole placement agent in the transaction.
The Notes, which mature in July 2019, are convertible into shares of the Company’s common stock at $0.35 cents per share. The Notes are secured by certain assets of the Company’s wholly owned subsidiary, CLR Roasters, LLC, personally guaranteed by the Company’s Chairman and CEO, Stephan Wallach, and bear interest at a rate of 8% per year. The Warrants are exercisable for five years after the closing date of the Purchase Agreement. For each $100,000 of principal amount of Notes, the holder received a warrant to purchase up to 391,304 shares of the Company’s common stock at $0.23 cents per share.
The Company has begun investing the net proceeds of the Offering in its wholly owned subsidiary, CLR Roasters, LLC, to fund the purchase of K-Cup manufacturing capabilities, and intends to execute its option to acquire a second coffee plantation that will, when acquired, double the Company’s coffee bean growing area in Matagalpa, Nicaragua, to fund capital improvements on its Nicaragua coffee plantations and processing plant and for the purchase of green coffee to continue to accelerate the growth on its newly formed green coffee division.
“We are pleased to be partnering with TriPoint Global Equities and we intend to use the proceeds from this financing transaction to aid in accelerating CLR Roasters’ growth,” said Steve Wallach CEO of Youngevity. “In the event that any of the Notes are converted into shares of the Company’s common stock, I will return that number of shares from my personal holdings to the Company’s treasury for cancellation so that there will be no dilution whatsoever to current shareholders upon any Note conversions.”
“We are proud to contribute to the future growth of CLR Roasters and Youngevity International,” stated Mark Elenowitz, CEO of TriPoint Global Equities. “The extraordinary efforts agreed to be undertaken by CEO Steve Wallach in an attempt to control the dilution to shareholders from any Note conversions, clearly signals his commitment and dedication to maximizing long-term shareholder value.”
The Company has filed a Current Report on Form 8-K with the Securities and Exchange Commission describing in more detail the terms of the financing and viewers should read such Report in its entirety. The foregoing information should not be construed, and is not intended, as an offer to sell or the solicitation of an offer to buy any of the Company’s securities.
About Youngevity International, Inc.
Youngevity International Inc., (OTCQX: YGYI) (www.YGYI.com) is a fast-growing, innovative, multi-dimensional company that offers a wide range of consumer products and services, primarily through person-to-person selling relationships that comprise a "network of networks." The Company also is a vertically-integrated producer of the finest coffees for the commercial, retail and direct sales channels. The Company was formed after the merger of Youngevity Essential Life Sciences (www.youngevity.com) and Javalution Coffee Company in the summer of 2011. Formerly known as AL International, Inc., the Company changed its name to Youngevity International, Inc. in July 2013.
About CLR Roasters
CLR Roasters (www.clrroasters.com) was established in 2001 and is a wholly-owned a subsidiary of Youngevity International. CLR Roasters produces coffees under its own boutique brands as well as manufactures a variety of private labels through various tiers of distribution. Industries served include grocery, retail, wholesalers, hospitality, cruise lines, wellness facilities, office coffee service, and convenience store distribution. It also produces a unique line of coffees with health benefits under the JavaFit® brand.
Safe Harbor Statement
This release includes forward-looking statements on our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," “encouraged” and similar expressions. The forward-looking statements contained in this press release include statements regarding the intended use of proceeds to aid in accelerating CLR Roasters’ growth and the continued growth of the green coffee division. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict, including our ability to use the proceeds as intended and the continue the growth of the green coffee division and the other factors described in our annual report on Form 10-K for the year ended December 31, 2013 and our other filings with the SEC. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release based on new information, future events, or otherwise, except as required by law.