SANTA MONICA, Calif., Dec. 27, 2012 /CNW/ - BOLDFACE Group, Inc. (BLBK), a
Santa Monica, California based celebrity beauty licensing company founded by
beauty industry veterans focused on top tier entertainment and designer
opportunities in the market, including the "Khroma Beauty by Kourtney, Kim and
Khloe Kardashian" brand (the "Company"), today announced that on December 21,
2012 the Company completed a private placement with a group of accredited
investors of 12% secured convertible notes in the aggregate principal amount
of $2,000,000 (the "Notes") and 5-year warrants (the "Warrants") to purchase
8,000,000 shares of the Company's common stock, 50% of which are exercisable
at $0.50 per share and 50% of which are exercisable at $1.00 per share.
"The closing of this private placement is the next major milestone for
Boldface after a strong holiday season and our brand introduction to 4,500
doors. This additional capital assures a solid launch into market in the first
quarter of 2013 with the core items in its "Khroma Beauty by Kourtney, Kim and
Khloe Kardashian" brand," said Nicole Ostoya, the Chief Executive Officer and
President of the Company.
The Notes are convertible into shares of common stock at any time prior to
maturity at $0.25 per share, subject to a one-time reset. The Notes will
mature on August 21, 2013 and contain customary affirmative and negative
covenants of the Company. The conversion price of the Notes and the exercise
price of the Warrants are subject to "weighted average" and other customary
anti-dilution protections. The Company is obligated to register the shares of
common stock underlying the Notes and Warrants within a pre-defined period.
Net proceeds from the offering are expected to be used for general corporate
For more detailed information on this financing, see the Company's Current
Report on Form 8-K which will be filed with the United States Securities and
Exchange Commission on or about December 28, 2012.
This press release does not constitute an offer to sell or the solicitation of
an offer to buy any security and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offer, solicitation or sale would be
BOLDFACE is a Santa Monica, California based celebrity beauty licensing
company founded by Nicole Ostoya and Robin Coe-Hutshing, beauty industry
veterans. Please visit www.boldfacegroup.com for further information.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical
facts may constitute forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Any forward-looking
statements contained herein are based on current expectations, but are subject
to a number of risks and uncertainties. The factors that could cause actual
future results to differ materially from current expectations include, but are
not limited to, risks and uncertainties relating to the availability of
additional funding; and the Company's business, product development, marketing
and distribution plans and strategies. These and other factors are identified
and described in more detail in the Company's filings with the United States
Securities and Exchange Commission, including, the Company's Current Reports
on Form 8-K. The Company does not undertake to update these forward-looking
Jodi Hassan of Alison Brod Public Relations, +1-212-230-1800,
SOURCE: BOLDFACE Group, Inc.
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CO: BOLDFACE Group, Inc.
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