Cool Holdings Announces Closing of $4 Million Debt Offering

MIAMI, Oct. 30, 2018 /PRNewswire/ -- Cool Holdings, Inc. (NASDAQ: AWSM) ("Cool Holdings" or the "Company") today announced that it has closed a private placement of convertible securities in which it raised aggregate gross proceeds of $4 million.  The Company sold $4 million of 12% unsecured convertible notes which mature in 12 months and are convertible into shares of the Company's common stock (the "Conversion Shares") beginning six months after issuance at $4.25 per share.  Interest on the notes is payable in shares of common stock at the same rate at the earlier of conversion or maturity.  Investors in the notes also received a warrant to purchase one-half share of common stock for each Conversion Share issuable under the notes at an exercise price of $4.25 per share. The warrants are exercisable beginning six months after issuance and expire three years from the date of issuance.

Commenting on the fundraising, Mauricio Diaz, Chief Executive Officer of Cool Holdings stated: "We intend to use the proceeds from this offering to retire existing debt and for other working capital needs, primarily inventory for our 17 OneClick^® retail stores in Florida, Argentina and the Dominican Republic."

About Cool Holdings, Inc.
Cool Holdings is a Miami-based company focused on premium retail brands.  It is currently comprised of OneClick^®, a chain of retail stores and an authorized reseller under the Apple^® Premier Partner, APR (Apple^® Premium Reseller) and AAR MB (Apple^® Authorized Reseller Mono-Brand) programs; Cooltech Distribution, an authorized distributor to the OneClick^®  stores and other resellers of Apple^® products and other high-profile consumer electronic brands; and verykool^®,  a brand of wireless handsets, tablets and related products the Company sells to carriers, distributors and retailers in Latin America. Additional information can be found on its website at www.coolholdings.com.

Forward-looking and cautionary statements
Forward-looking statements in this press release and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, including those related to expansion of our stores in various geographic regions, optimization of inventory levels, increases in sales and profitability, deleveraging our balance sheet, acquisitions, and continuation of our license agreements with Apple^®, involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements, including actions by third parties, such as Apple^®. These factors include, but are not limited to, risks arising from prevailing market conditions and the impact of general economic industry or political conditions in the United States or globally. A list and description of these and other risk factors can be found in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, which can be reviewed at www.sec.gov. These forward-looking statements speak only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Apple^® is the registered trademark of Apple Inc.

SOURCE Cool Holdings, Inc.

Related Links

http://www.coolholdings.com