BOLDFACE raises funds by selling convertible notes to purchase 24.7 million shares

The finance was raised from institutional investor led accredited investors and the net proceeds from the deal are expected to be used for general corporate purposes.

The Notes are convertible into shares of common stock at a price of $0.068 per share before the date maturity on 1 December 2014.

Conversion price of the Notes is subject to a "full ratchet" and other customary anti-dilution protections.

BOLDFACE senior secured convertible notes require mandatory redemption payments starting on 1 June 2014 and contain customary affirmative and negative covenants of the Company.

The company’s Warrants can be sold at price of $0.082 per share and contain "weighted average" and other customary anti-dilution protections.

The holders of the Company’s 12% secured convertible notes in the principal amount of $3.3m and related warrants to purchase 13,520,000 shares have agreed to convert their notes and exercise their warrants on a cashless basis, respectively.

BOLDFACE Group chief executive officer Nicole Ostoya said the finance will provide working capital for the company as it enters second year of operations following the launch of the Kardashian Sisters cosmetics line in over 4,100 stores in the US over the past nine months.

"This capital will allow the company to develop and market long lasting celebrity brands with international reach," Ostoya added.

"Conversion of the 12% notes and removal of the related warrants will significantly improve the balance sheet of our company by decreasing a large portion of the derivative liability associated with these warrants."