BOLDFACE Group Closes $1.13 Million Financing and Expands its Board of Directors

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Apr 04, 2013, 02:17 ET

SANTA MONICA, Calif., April 4, 2013 /PRNewswire/ -- BOLDFACE Group, Inc. (OTCBB: BLBK), a celebrity beauty licensing company (the "Company" or "Boldface") founded by beauty industry veterans focused on top tier celebrity and designer brands to create product opportunities in the beauty, home and fragrance markets, today announced that on March 28, 2013, the Company completed a second closing of its private placement financing of 12% secured convertible notes with a group of accredited investors in the aggregate principal amount of $1,130,000 (the "Notes") and 5-year warrants (the "Warrants") to purchase 4,520,000 shares of the Company's common stock. Aegis Capital Corp. acted as the sole placement agent for the private placement financing.

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 November 28, 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 purposes.

"We are pleased at the confidence our investors are showing in our company now that we have started to penetrate the market in a major way. This financing furthers our mission to create long lasting brands with international reach," said Nicole Ostoya, the Chief Executive Officer and President of Boldface.

The Company also announced an expansion of its board of directors to four members from three. Joining the board as an independent director is Patrick Collins.

"Mr. Collins will add depth and experience to Boldface, as we enter an exciting new stage of growth and development. The board addition represents an important step as we execute our business model," said Ms. Ostoya.

Mr. Pat Collins, 38, has been with JH Partners since 2002 and is currently a partner with the firm. Mr. Collins is responsible for originating, executing and monitoring private equity investments. Mr. Collins works in all consumer sectors, but has a particular expertise and focus in emerging markets, beauty and direct marketing. He also plays a key role in managing partner company financings and is the primary point of contact for lenders. Mr. Collins' operating experience primarily consists of working with management teams to effect key strategic initiatives and operational improvements. Mr. Collins currently serves on the board of Neutral Duty Free Shops. He is also actively engaged with AmeriMark, RLJ Entertainment, Bell Automotive and Studio Moderna and was previously involved with Jurlique, Bare Escentuals, Country Home Products and Walter Drake. Prior to joining JH Partners, Mr. Collins worked at Behrman Capital, a private equity firm with $1.8 billion under management. Prior to Behrman Capital, Mr. Collins was an investment banker at Merrill Lynch & Co., Inc. in New York. Mr. Collins received an MBA from Harvard Business School and a BA from Yale University, where he was elected to Phi Beta Kappa.

For more detailed information on this financing, see the Company's Current Report on Form 8-K, which has been filed with the United States Securities and Exchange Commission on April 3, 2013. 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 unlawful.

About BOLDFACE

BOLDFACE is a Santa Monica, California based celebrity beauty licensing company founded by 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 U.S. Securities and Exchange Commission, including the Company's Current Reports on Form 8-K. The Company does not undertake to update these forward-looking statements.

Website: http://www.boldfacegroup.com

SOURCE BOLDFACE Group, Inc.