Brent Toevs, CEO of Marley Coffee, said, “We could have gone with other single-serve platforms, but we decided to expand our relationship with Mother Parkers because we believe in the partnership, their technology and the quality of the coffee that comes from the RealCup system.
With Mother Parkers, we won’t get lost in the shuffle of other brands, and we are more confident in our path to becoming the premium brand leader in the marketplace.”
He added, “We support an Open Brew philosophy, meaning, an open single-serve format that gives customers better options in the marketplace in terms of price and quality. We’re proud to have a partner who truly believes in our brand, standards of quality, and is continuously pushing the limits of what can be achieved in the single-serve format.”
About the Transaction
The units each were priced at $0.3409 per unit, and reflective of the Volume-Weighted Average Price (VWAP) of the 50 days preceding the date the parties first began discussions regarding an investment (March 7, 2014).
The warrants provide Mother Parkers the option to obtain an additional 7,333,529 shares of common stock at an exercise price of $0.51135 per share (150 percent of the unit price) for three years.
Marley Coffee also provided Mother Parkers certain first right of refusal rights to participate up to 10 percent in equity fundings Marley Coffee may undertake (subject to certain exceptions) for two years following the closing.
The terms of the transaction and the warrants are described in greater detail in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on April 29, 2014.
