$KEGS 1812 Brewing Company, Inc. Eliminates Convertible Debentures
Company uses fixed price stock offering to repay “floorless” convertible notes
Watertown, NY, June 28, 2022 (GLOBE NEWSWIRE) -- 1812 BREWING COMPANY, INC. (OTC Pink: KEGS) (the "Company" or “KEGS”) is pleased to announce that it used proceeds from its fixed-price Regulation A offering to repay two outstanding variable price convertible debentures. The two notes, with aggregate repayment terms of approximately $300,000, had the right to convert into KEGS stock at a discount to the then-market price of the Company’s shares. Because these conversions can be made at potentially lower and lower prices, they are often called “floorless” notes.
KEGS’ Chairman and CEO, Tom Scozzafava, stated, “While the Company surely could have benefited by deploying these funds into operations and expansion, we felt a longer-term benefit would be derived by repaying these notes before conversions could commence.” Mr. Scozzafava continued, “We look forward to keeping you updated on the Company’s progress and developments – both operational and financial.”