Business
Iconic Brands Announces $1.5 Million Above-Market Private Placement of Restricted Equity
Iconic Brands Announces $1.5 Million Above-Market Private Placement of Restricted Equity.
About this update from Iconic Brands, Inc.
[{"type":"text","content":"\n Company Plans to Use Proceeds to Increase Awareness for the National Launch of Hooters Spirits and New Product Innovation AMITYVILLE, NY, Jan. 13, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE — Iconic Brands, Inc. (ICNB) (“Iconic” or the “Company”) today announced that it has signed definitive agreements for a $1.5 million convertible preferred equity financing from existing shareholders. Under the terms of the financing agreement, existing shareholders purchased $1.5 million of Iconic’s Series G Preferred Stock convertible into common stock at $1.25 per share with 100% warrant coverage at an exercise price of $1.25 per share and exercisable for 5 years. The offering is expected to close on or about January 13, 2020, subject to satisfaction of customary closing conditions. Iconic plans to use the net proceeds from the transaction to increase social media and digital marketing, hire brand ambassadors and product influencers, increase inventory for accelerating demand, as well as for new product innovations. Richard DeCicco, Chief Executive Officer of Iconic, stated, “2019 set the stage for Iconic Brands. Our existing investors committing to a financing at a significant premium to the current market price of our stock is a strong vote of confidence to the execution of our growth strategy. This transaction allows us to ramp up the national expansion of Hooters Spirits that we have already seen very strong interest in since the January 1st launch. Given the immediate interest shown by the purchase orders we have received thus far in the 8 SKUs of Hooters Spirits, we believe 2020 will be a year of exponential growth. We are now in position to take advantage of our success in broad new markets across the country and internationally with other brands we have developed, enabling us to capitalize on new opportunities for private-label business and become an early mover in the high-growth organic and vegan niches. Coupled with the elimination of our debt on our balance sheet in 2019, this latest round of capital will be used to fuel our growth, enhance our product offering, and magnify our leadership position. In 2020 our goal is to grow top-line revenues to attract additional attention from strategic partners. In 2021 our goal is to monetize the brands and/or the Company.” The Special Equit...