Drinks Americas Holdings, Ltd. (DKAM)

[Drugdoctor]

Nope, it's ALL GONE!! Kah is gone! Reingold is gone, Trump is gone, PK is gone, Cabos are gone, Olifant is gone, EVERYTHING that DKAM ever had is gone... Computer equipment is gone, Inventory is gone... DKAM is just an address in CT now...

But wait... there still is something... Yes... the debts are NOT GONE... but never fear... Convertible debentures are here, and they still have a ton of shares they can sell at 38% discount to market... Now is it making sense why the distribution curve looks like this? Check the I-box for details...


As of January 31, 2013, the Company defaulted on its license agreement with WBI and subsequently WBI stopped shipping its KAH tequila products as of January 31, 2013.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On November 1, 2012, the Company issued, in lieu of cash payment for past due accounts payables equal to $1,630,000, two convertible debentures to Worldwide Beverage Imports in the aggregate principal amount of $1,630,000 (the “WBI Debentures”). On January 31, 2013, the Company and WBI memorialized their agreement to cancel $1,630,000 of past due accounts payable owed to WBI in exchange for the issuance of the WBI Debentures. The WBI Debentures accrue interest at 8% per annum. The WBI Debentures, which includes all principal and interest, are due in full on May 1, 2013. The WBI Debentures are convertible, at the option of the holder, into shares of common stock of the Company at the lesser of (i) the closing price of the Company’s common stock on November 1, 2012; or (ii) the closing price of the Company’s common stock on the date immediately prior to the date the holder of the WBI Debentures requests their conversion. However, in the event of a default under the WBI debentures, the WBI Debentures will be convertible at a 38% discount to market. The WBI Debentures are currently in default.

On January 15, 2013, the Company received a letter of default (“Letter of Default”) for the nonpayment of the $325,000 due to the Holder on the Maturity Date. In the Letter of Default, the Holder declared the Company’s default under the Convertible Debenture and demanded the release of the Pledge Shares pursuant to the Security Agreement. The Company and JoMex, LLC (“Pledgor”) released on February 5, 2013, the Pledge Shares to the Holder.


On April 15, 2013, the Holder converted at the default conversion price (a 38% discount to market) $12,500 of the Convertible Debenture into 1,456,876 shares of our common stock.