DENVER -- Mother Parkers Tea & Coffee Inc. has entered into an agreement to invest up to $8.25 million in Marley Coffee.
Under the terms of the agreement, Mother Parkers will acquire 7,333,529 units at $0.3409 per unit (each consisting of one share of common stock and one warrant to purchase one share of common stock) for $2.5 million, which represents an approximately 7% interest in Marley Coffee.
Denver-based Marley Coffee may receive up to an additional $3.75 million upon the exercise of warrants. In addition, Mother Parkers will provide $2 million in marketing funds over the next two years to promote the Marley brand in the United States and Canada.
Ontario-based Mother Parkers produces Marley Coffee in its RealCup capsules, which are designed for use with K-Cup-compatible brewers. Mother Parkers is also Marley's Canadian foodservice provider and brings its coffee to market in key retail accounts across Canada.
Marley Coffee chairman and founder Rohan Marley said most of the cash infusion from Mother Parkers will go toward reinforcing the company's brand and increasing product turn.
Mother Parkers will also receive a seat on the to-be-formed board of advisors of Marley Coffee to help shape the company's growth.
Rohan Marley will become the lead ambassador for WaterWise, Mother Parkers' environmental sustainability project, which seeks to improve the living conditions and water filtration systems in the Sidamo area of Ethiopia, a coffee growing region from which Marley Coffee sources its coffee beans.