Singapore-listed Sunmoon invests in US beverage firm for $317,200

Singapore-listed fruit and produce company Sunmoon Food Company has agreed to invest in United States beverage firm True Drinks Holding for US$250,000 (S$317,200).

Sunmoon will acquire 62,500 convertible preferred stocks in True Drinks Holding for US$4 per stock, it said on Wednesday.

True Drinks Holding, which is based in Nevada, sells childrens' beverages in 22,000 stores across the US.

The stocks come with the option to be converted into common shares at 16 common shares for each convertible preferred stock. If Sunmoon converts all its stocks into common shares, it would hold 1.31 per cent of the total common shares.

Sunmoon will also have the option to receive warrants to buy 291,667 common shares at an exercise price of 30 US cents apiece. If it converts all the warrants, the shares will amount to a 1.49 per cent stake.

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