Business

Marley coffee gets US$4-m facility

Sunday, August 05, 2012    

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JAMMIN Java, which trades as Marley Coffee, has landed a deal that will give it access US$4 million in loans and capital injection.

The gourmet coffee company plans to use the funds for its North American and international expansion.

A credit agreement with TCA Global Credit Master Fund gives Jammin Jamaica the right to borrow US$2 million from the financier, while another agreement with Fairhills Capital Management allows the coffee distributor to issue and sell up to US$2-million worth of its common stock to the investment management firm.

TCA will use the value of eligible accounts receivable by Jammin to secure the repayment of the amounts borrowed from the financier.

The equity deal will provide Fairhills with a 20 per cent discount to bids on the coffee companies stock price at a given time, over the next three years.

"We are very pleased to have TCA and Fairhills join the Marley Coffee movement as we continue to build our business and strengthen our company," said Rohan Marley, chairman, Marley Coffee. "We look forward to another year of growth as we establish new channels of distribution for our products."

"As we outlined in our Corporate Update in June, we've had a year of important milestones as we work to increase our market share and bring the Marley Coffee brand and products to customers worldwide," said Brent Toevs, CEO, Marley Coffee. "The reality is that we are executing on numerous initiatives, and with this financing in place we plan to strategically increase our workforce to successfully implement these business-building programmes and continue our growth and focus on delivering long-term value to shareholders. We are happy to be working with TCA and Fairhills to provide the financial flexibility and resources to build upon our momentum."

Jammin Java posted a net loss of US$894,000 on US$310,000 in revenue for the three months to April 30, and had an accumulated deficit of US$3.9 million.

Geographically, Marley Coffee initially focused on retail grocery sales and marketing on West Coast and Southwestern parts of the United States and Western Canada.

More recently, it has expanded to add distributors in the midwest and north-eastern regions of the United States.

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