ADDISON, Texas, July 3 /PRNewswire-FirstCall/ -- Boo Koo Holdings, Inc.
(OTC Bulletin Board: BOKO) announced today that it has raised $1 million
through the issuance of Subordinated Notes in a private placement financing in
which Gil Cassagne, a Director of the Company, and other accredited investors
participated. The proceeds from the private placement will be used for
working capital and general corporate purposes.
The Subordinated Notes bear interest at a rate of 15% and mature on
December 31, 2008. The Notes are not convertible. Investors also received
five-year warrants to purchase an aggregate of 1,500,000 shares of the
Company's common stock, exercisable at $0.01 per share.
The notes, the warrants and the shares of common stock underlying the
warrants have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration under the Securities Act and applicable state securities laws or
an applicable exemption from those registration requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of such state or jurisdiction.
The Company will file a Current Report on Form 8-K with the Securities and
Exchange Commission describing in more detail the terms of the private
placement.
About Boo Koo
Boo Koo currently develops, produces, markets and distributes alternative
beverage category energy drinks under the Boo Koo(R) and Gazzu (R) brand
names. Boo Koo currently sells and distributes its products in parts of the
United States and Canada through its network of regional bottlers and other
direct store delivery distributors, including independent Coca-Cola, Cadbury
Schweppes and other wholesale distributors. Gazzu (R) is sold exclusively to
Circle K. Boo Koo's products are sold primarily to mainstream convenience and
grocery store chains, drug stores, gas stations and other retail outlets. The
Company's objective is to transition from an energy beverage maker to a
broader-based consumer beverage company focused on health, wellness and
functional benefit beverages.
Forward-looking Statements
This news release contains 'forward-looking statements' made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include statements with respect to the
Company's beliefs, plans, objectives, goals, expectations, anticipations,
assumptions, estimates, intentions, and future performance, and involve known
and unknown risks, uncertainties and other factors, which may be beyond the
Company's control, and which may cause the Company's actual results,
performance or achievements to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements, including its ability to raise additional capital, its reliance on
distributors of its products, its ability to manage inventory, its ability to
maintain relationships with customers, its reliance on third parties to
produce and package its products, its limited operating history, the
availability and cost of raw materials, effects of competition and the other
factors listed under 'Risk Factors' in its filings with the SEC. All
statements other than statements of historical fact are statements that could
be forward-looking statements. The Company assumes no obligation to update the
information contained in this news release.
SOURCE Boo Koo Holdings, Inc.
