Crumbs Bake Shop, Inc. Completes its $10 Million Senior Convertible Note Offering

  Crumbs Bake Shop, Inc. Completes its $10 Million Senior Convertible Note

Business Wire

NEW YORK -- June 12, 2013

Crumbs Bake Shop, Inc. (“Crumbs”) (NASDAQ: CRMB), the largest cupcake
specialty store chain in the U.S., today announced that it has closed on the
sale of the final $3 million of its $10 million in aggregate principal amount
of its senior unsecured convertible promissory notes (the “Notes”) to
accredited investors pursuant to the terms of its previously-announced
Securities Purchase Agreement with Michael Serruya (the “Purchase Agreement”).
The first sale of $7 million in aggregate principal amount of its Notes closed
on May 10, 2013 and the second sale of $3 million in aggregate principal
amount of its Notes closed on June 11, 2013, completing the capital raise
contemplated by the Purchase Agreement.

After paying its offering expenses, the Company received total net proceeds of
approximately $9.2 million from the capital raise, which the Company intends
to use to fund its growth strategy and for general working capital.

About Crumbs Bake Shop, Inc.

The first Crumbs bake shop opened in March 2003 on the Upper West Side of
Manhattan and is well known for its innovative and oversized gourmet cupcakes.
The Company currently has 73 locations in 12 states and the District of

Forward Looking Statements

Some of the statements in this press release constitute forward-looking
statements within the meaning of the federal securities laws. Words such as
“anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,”
“aim,” “will” and words and terms of similar substance and any financial
projections used in connection with any discussion of future plans,
strategies, objectives, actions, or events identify forward-looking
statements. Such statements include, among others, those concerning our
expected financial performance and strategic and operational plans, as well as
all assumptions, expectations, predictions, intentions or beliefs about future
events. These statements are based on the beliefs of our management as well as
assumptions made by and information currently available to us and reflect our
current views concerning future events. As such, they are subject to risks and
uncertainties that could cause our results to differ materially from those
expressed or implied by such forward-looking statements. Such risks and
uncertainties include, among many others: the risk that the businesses of
Crumbs Bake Shop, Inc. and Crumbs Holdings LLC and its wholly-owned
subsidiaries will not be integrated successfully; the risk that any
projections, including earnings, revenues, expenses, synergies, margins or any
other financial items that form the basis for management’s plans and
assumptions are not realized; the risk of disruption from being a public
company, making it more difficult to maintain relationships with customers,
employees or suppliers; a reduction in industry profit margin; the inability
to continue the development of the Crumbs brand; the timing of and ability to
achieve profitability of new stores; the inability to manage or fund rapid
growth; requirements or changes affecting the business in which Crumbs Bake
Shop, Inc. and Crumbs Holdings LLC and its wholly-owned subsidiaries are
engaged; our ability to successfully implement new strategies; operating
hazards; and competition and the loss of key personnel; changing
interpretations of generally accepted accounting principles; continued
compliance with government regulations; changing legislation and regulatory
environments; the ability to meet the NASDAQ Stock Market’s continued listing
standards; a lower return on investment; and the general volatility of the
market prices of our securities and general economic conditions. These and
other risks are discussed in detail in the periodic reports that Crumbs Bake
Shop, Inc. files with the Securities and Exchange Commission (the “SEC”),
including in the “Risk Factors” section of its Annual Report on Form 10-K for
the year ended December 31, 2012, and investors are urged to review those
periodic reports and its other filings with the SEC, which are accessible on
the SEC’s website at, before making an investment decision. Crumbs
Bake Shop, Inc.’s forward-looking statements may also be subject to other
risks and uncertainties, including those that it may discuss elsewhere in this
news release or in its filings with the SEC. We assume no obligation to update
these forward-looking statements except as required by law.


Investor Relations Contact:
Tom Ryan/Raphael Gross of ICR / 646-478-9917
Media Relations Contact:
Quinn Solomon of Crumbs / 212-221-7105
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