Sunmoon Food Company has entered an agreement to invest $250,000 ($317,200) in American beverage manufacturer True Drinks Holdings. Sunmoon is a Singapore-listed fruit and produce firm, according to The Straits Times.
Under the terms of the said deal, Sunmoon will purchase 62,500 convertible preferred stocks from True Drinks Holdings at $4 apiece. The said terms of the stock acquisition were announced by Sunmoon on Wednesday, the report detailed.
Sunmoon has the option to convert the acquired stocks into common shares. Every convertible preferred stock is equivalent to 16 common shares. In the event that Sunmoon would opt to convert all the said stocks into common shares, the Singaporean firm would own 1.31% of the total common shares, the report explained.
True Drinks Holdings is an American company that markets beverages for children to around 22,000 outlets across the US. The Nevada drinks manufacturer is currently based in Nevada,The Straits Times reported.
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