SANTA MONICA, Calif., April 4, 2013 /PRNewswire/ -- BOLDFACE Group, Inc. (OTCBB: BLBK), a celebrity beauty licensing company (the "Company" or "Boldface") founded by beauty industry veterans focused on top tier celebrity and designer brands to create product opportunities in the beauty, home and fragrance markets, today announced that on March 28, 2013, the Company completed a second closing of its private placement financing of 12% secured convertible notes with a group of accredited investors in the aggregate principal amount of $1,130,000 (the "Notes") and 5-year warrants (the "Warrants") to purchase 4,520,000 shares of the Company's common stock. Aegis Capital Corp. acted as the sole placement agent for the private placement financing.
The Notes are convertible into shares of common stock at any time prior to maturity at $0.25 per share, subject to a one-time reset. The Notes will mature on November 28, 2013 and contain customary affirmative and negative covenants of the Company. The conversion price of the Notes and the exercise price of the Warrants are subject to "weighted average" and other customary anti-dilution protections. The Company is obligated to register the shares of common stock underlying the Notes and Warrants within a pre-defined period.
Net proceeds from the offering are expected to be used for general corporate purposes.
"We are pleased at the confidence our investors are showing in our company now that we have started to penetrate the market in a major way. This financing furthers our mission to create long lasting brands with international reach," said Nicole Ostoya, the Chief Executive Officer and President of Boldface.The Company also announced an expansion of its board of directors to four members from three. Joining the board as an independent director is Patrick Collins. "Mr. Collins will add depth and experience to Boldface, as we enter an exciting new stage of growth and development. The board addition represents an important step as we execute our business model," said Ms. Ostoya.