Drinks Americas Holdings, Ltd. (OTCPK:DKAM) announced a private placement of 8% unsecured convertible promissory note due September 6, 2014 for gross proceeds of $125,000 on March 6, 2014. The transaction included participation from an accredited individual investor, Jose Manuel Toscana Gonzalez. The note will carry an interest rate of 8% per annum and will mature on September 6, 2014. The note will be convertible into the common shares at a conversion price equal to 35% of the lowest trading price of shares for the 24 months preceding their original issuance dates, which correspond to the dates on which the respective portion of the transaction size was received by the company. In the event of a default, the notes will be convertible at a 75% discount to the average of the three lowest trading prices of the ten trading days prior to such conversion.

On March 11, 2014, Drinks Americas Holdings, Ltd. closed the transaction. The company issued an additional 8% convertible promissory note due September 11, 2014 for gross proceeds of $130,000 bringing the total proceeds raised to $255,000. The note issued in the second tranche will carry 8% interest rate and will mature on September 11, 2014.