KonaRed, an American superfruit beverage brand, has entered into a purchase agreement with institutional investor Lincoln Park Capital Fund.
As per the agreed terms, Lincoln Park Capital will invest around $12m in KonaRed over the next 30 months, as the company has the right to sell its common stock to Lincoln Park.
The company will use the investment to boost brand awareness among consumers and retailers through different marketing and sales strategies and for working capital requirements.
KonaRed president and CEO Shaun Roberts said, "This access to capital from LPC increases our flexibility to increase product awareness with consumers via marketing and retail expansion, build inventory, pursue additional product development and formula creation, and continue to build the KonaRed brand."
KonaRed has developed a proprietary process that produces antioxidant-packed extracts and powders from the coffee fruit which are used in its antioxidant juices, organic green teas, and on-the-go packs, as well as ingredients which can be added to food, beverages, and nutritional products.
Headquartered in Kalaheo, Hawaii, the company's products are sold in select Whole Foods, Albertsons, Safeway, Sprouts, Walmart, 7-Eleven, and many other retail outlets throughout the US and Canada.
