Hangover Joe’s Holding Corporation (OTCQB: HJOE)(the “Company”), the maker of “The Hangover” Recovery Shot and developers of an innovative state of the art proprietary Git-R-Done-Energy Shot with Git-R-Done Productions, Inc and Larry the Cable Guy, is pleased to announce that it has settled its dispute with TCA Global Master Credit Fund, L.P.
The $513,000 Settlement Agreement with TCA Global Master Credit Fund, L.P. (“TCA”), includes GEL Properties LLC (“GEL”) and Union Capital LLC (“Union”), who each entered into Assignment and Assumption Agreements with TCA in the amount of $230,000 payable in four equal monthly installments and the Company agreed to pay TCA $53,000 sixty days after the final installments are paid under the Assignment and Assumption Agreements.
The Company simultaneously issued replacement notes to GEL and Union for the exchange of the liability acquired from TCA for 8% Convertible Redeemable Notes (the “Convertible Notes”) in the principal amount of $57,500 each for their first installments.
All interest and principal under these Convertible Notes must be repaid on July 12, 2015 and are convertible into common stock, at the note holder’s option, at a 45% discount to the average of the three lowest closing prices of the common stock during the 20 trading day period prior to conversion.
“This is an important step in allowing us to obtain a working capital line of credit that can better allow us to grow the Company,” said Matthew Veal, CEO. “We have entered into an important stretch where we have several promising test markets underway in the upcoming weeks for the Git-R-Done Energy Shot. If these test markets continue to progress in a favorable manner we will need the type of working capital line that can grow with sales and absorb any negative cash flow that often occurs with growth. The settlement negotiations were lengthy and complicated, but we look forward to having this behind us so we can focus all of our energies into growing our company.”
“We are pleased to have this resolved,” said Michael Jaynes, Chairman and Co-founder of Hangover Joe's. “With the addition of our new manufacturer, additional logistics and fulfillment facilities, and of our course our new product, Larry the Cable Guy’s Git-R-Done Energy Shot, we believe we are poised to achieve much greater sales and financial performance than ever before in our company’s history. We have made changes where needed, and continue to look for ways to improve our Company.”
“We have certainly survived some difficult growing pains,” added Shawn Adamson, Co-Founder and Vice President of Sales and Marketing of Hangover Joe's. “While it is inevitable that more will occur, we are excited about our position going forward. The response to our new product, in the market place and among users, to Larry the Cable Guy’s Git-R-Done energy shot has been very favorable, and this in turn is helping us reestablish our sales of Hangover Joes Recovery Shots, which had effectively been reduced to a trickle while we worked out the details of this settlement.” added Adamson. “We look forward to our new relationships with Union Capital, Gel Properties and others that can Git-R-Done for Hangover Joe's“
About Hangover Joe’s Holding Corporation
Hangover Joe’s is the exclusive producer of “The Hangover” Recovery Shot, and one of the nation’s top selling anti-hangover recover drink & hangover recovery shot. Git-R-Done-Energy is an officially licensed product of Git-R-Done Productions, Inc and Larry the Cable Guy and is a healthy energy drink. Visit our website at www.GitRDoneEnergy.com and www.hangoverjoes.com https://www.facebook.com/GitRDoneEnergy https://www.facebook.com/hangoverrecovery and on twitter @GitRDoneEnergy. @TheHangoverShot
On July 25, 2012, Hangover Joe’s became a publicly traded company and is trading on the OTCBB as HJOE. For more information, visit www.hangoverjoes.com, or check us out on Facebook and YouTube.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements." Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the Company's expectations regarding the development of marketing and sales relations nationally. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with developing new products and operating as a development stage company, our ability to raise the additional funding we will need to continue to pursue our business and product development plans, competition in the industry in which we operate and market conditions. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents we file with the SEC, available at www.sec.gov.
Hangover Joe's Holding Corporation
SOURCE: Hangover Joe’s Holding Corporation