This is just in for KRED:
KonaRed Corporation Raises First $500,000 from $12 Million Equity Line
Jun 02, 2014 09:02:00 (ET)
– Funds Will be Used to Fuel Sales Expansion –
KOLOA, Hawaii, June 2, 2014 /PRNewswire/ – KonaRed Corporation (OTCBB/OTCQB: KRED), manufacturers of Antioxidant Juices from the exclusive Hawaiian CoffeeBerry(R), coffee fruit from Kona, Hawaii, announced today it has completed a drawdown of $500,000 of the $12 million Equity Line in place with Lincoln Park Capital Fund LLC.
“Our Form S-1 was declared “Effective” by the U.S. Securities & Exchange Commission, which therefore allows us to utilize the Equity Line. We’ve attempted to choose wisely on our sale of stock. With Lincoln Park, we are dealing with a firm with an excellent reputation and our Equity Line allows us to launch our strategic plans in a very orderly trajectory,” said CEO and Founder Shaun Roberts.
“It is important for our investors to realize that this money will be used to manufacture product to supply expected increased demand and other capital needs. The Equity Line provides a low cost of capital and is an efficient method of managing growth,” Mr. Roberts said.
Mr. Roberts continued, giving investors a snapshot of KonaRed today:
– We have an exciting, healthy line of unique products which are fully
tested and currently in production using proven manufacturing methods.
– Our partnership with VDF FutureCeuticals, Inc. provides us access to high
quality scientific research to ensure the quality of our wellness
products.
– We’ve expanded our senior management and Board with talented, experienced
and successful individuals.
– Our customer base continues to grow as evidenced by our products being
sold on the Mainland by major customers such as Walmart and Vitamin
Shoppe.
– Splash Beverages Group, with an historical track record of success, is
now aggressively developing new distribution channels to increase our
sales.
– We became publicly traded to provide methods to raise capital and the
Equity Line now provides us rapid access to investment capital from a
reliable source
“I’m pleased with our progress over the last eight months and our team continues to be dedicated to making KonaRed a major success; a revolution in the wellness beverage sector. We’ve only just begun and are pushing hard to fulfill our plans going forward,” Mr. Roberts concluded.
EQUITY LINE:
The Equity Line has become increasingly accepted as an attractive and viable solution that meets the financing needs of public companies. Unlike debt, an Equity Line does not charge interest and the funds received through the Equity Line do not have to be repaid. An Equity Line allows a public company to “draw” against its equity on a periodic basis by selling registered shares of common stock to an investor for cash. An Equity Line can provide a reasonably reliable, steady stream of cash that can be used to fund ongoing working capital needs. Equity Lines usually offer less dilution and a lower cost of capital to issuers than other forms of investment. And, unlike secured debt instruments such as convertible debentures, Equity Lines do not have any security interests in the assets of the issuing company so there are no lien filings. Additionally, Equity Lines often are structured in a manner that give issuers the control over the timing and amount of shares that are sold, allowing issuers to determine when capital is raised and at what price. Such is the case with KonaRed’s Equity Line which provides the Company with full control over when to sell shares to Linclon Park Capital.